חוק לעידוד תעשייה עתירת ידע (הוראת שעה), התשפ"ג-2023Law to Encourage Knowledge-Intensive Industry (temporary provision), 2023 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Law establishes various types of tax benefits for investors in high-tech companies and for high-tech companies, as a temporary provision until the end of 2026: granting a tax credit to investors in start-up companies; deferring payment of capital gains tax on the sale of a company to a shareholder who uses part of the proceeds from the sale to invest in a start-up company; allowing investment in shares to be recognized as a tax-deductible expense for a company that acquires control of another company – Israeli or foreign – so that the cost of the investment can be deducted over 5 years after control is obtained; granting a tax exemption to a foreign financial institution on its income from interest or linkage differentials borne by an Israeli company as part of the repayment of a loan given to it by that financial institution; extending the benefit set out in Section 92A of the Ordinance for investments in R&D companies listed on the stock exchange, such that a qualifying investment in the shares of an R&D company will be recognized for the investor as a capital loss in the year in which the investment was made, up to an amount of 5 million new shekels. The Law further provides that the Commissioner of the Tax Authority and the Director General of the Innovation Authority shall report to the Finance Committee no later than six months before the end of the period of the temporary provision, on the extent to which the tax benefits were utilized, the amount of benefits granted, the benefit derived from the Bill, and whether it is advisable to continue applying the benefits.

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