Governmental Investment Incentive
policies
The main standard investment incentive policies are:
- Government funding from 30% to 66% for
R&D projects
- Government risk-sharing (through
government-supplied guarantees) covering up to 2/3ds of all investment items
(e.g., construction, machinery, equipment, running-in expenses, working
capital, marketing, advertising expenses, acquisition of know-how, etc.)
- Grants of 20% for sub-contracted R&D
work in Israel by foreign companies.
- Government Grants of up to 38% of the
investment in fixed assets.
- Tax Holidays of up to 10 years
- Small business encouragement, including up
to $250.000 in loans to enterprises of 75 employees or less.
More detailed information available from the
Government of Israel Economic Offices.
Several of Israel's CPA firms publish an
in-depth annual report on Israel's Investment and tax incentives. The most
important are:
Igal
Brightman and Co.(insert
web address)
Kesselman
& Kesselman. (PWC subsidiary)(insert
web address)
Raveh-Ravid
& Co.(insert
web address)
Yehuda
Raveh & Co.(insert
web address)