חוק לתיקון פקודת מס הכנסה (מס' 220 והוראות שעה), התשע"ו-2016Law for the Amendment of the Income Tax Ordinance (No. 220 and temporary provisions), 2016 · automatic translation · suggest a correction

Official summary of the law (Knesset)

Income Tax Ordinance (Amendment No. 220 and Temporary Provisions), 2016 (hereinafter - the Amendment), was passed in second and third reading on 21 March 2016 and established three main amendments intended to ease investments in companies operating in the fields of advanced technology (high-tech). The first amendment eases the rate of holding of means of control in an advanced technology fund, such that instead of holding of 50% being considered control, it was established that the holding of one or more means of control in the fund by several provident funds, at a rate not exceeding 75%, will not constitute control. The second amendment was made as a temporary provision for three years, during which the cost of investment in shares purchased as part of a public offering of research and development companies will be recognized at the time of investment as a deductible capital loss, instead of being recognized as cost at the time of sale of the shares. The third amendment allows individuals who are controlling owners of research and development companies to be taxed on the increase in value of options before the company's registration on the stock exchange via the capital gains track, where the tax rate is only 25% instead of the marginal tax rate of 48%.

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