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High-Tech Tax Relief for Foreign Investors Announced by Israeli Finance Minister

This afternoon (24 Sept. 2001), Israeli Finance Minister, Sylvan Shalom, announced the promulgation of income tax regulations effective today which will grant foreign investors in Israeli high-tech companies and venture capital funds a full exemption from Israeli income (and capital gains tax). The Income Tax Commissioner, Yoni Kaplan, explained at today's press conference that the new regulations will not transform Israeli venture capital companies into tax shelters, since an advance ruling will be required in every case in which tax relief is sought.

The new regulations, which are to remain in effect until 1 January 2004, are designed to facilitate the raising of foreign investment capital in local venture capital funds. Zell & Co. intends to publish the relevant provisions of the new regulations in English on this site as soon as practicable.

For further information, please contact the Chairman of our Tax Practice Group, Jeremy Cohn, Adv. or Marc Zell, Adv.

Telephone: +972-2-571-5030
Fax: +972-2-571-5031
Email: israel@fandz.com

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