Achieve Feasibility At Its Finest When You Set Up Business In Israel
Israel is home to Tel Aviv, which is where some of the most advanced technology hubs are existing outside of the United States. The country has the talent, experience, and infrastructure needed for companies to flourish and thrive. In fact, Israel does well in research and development. It’s common for owners to choose one director and one shareholder when they set up business in Israel. These individuals need not be Israeli nationals or residents. Meanwhile, the country still holds several other benefits that have an allure for investors. Why is it feasible for investors to set up business in Israel? Because of the following benefits they stand to gain:
Receive Funding for Research & Development Projects
In Israel, companies who are investing in research and development projects may receive funding from the Office of Chief Scientist (OCS) in Israel. This funding will cover approximately 20% to 50% of the program’s budget, and companies which are operating in selected priority areas will be eligible for another 10% grant from the OCS.
Enjoy Reduction in Taxes
Industrial companies which are set up and incorporated in Israel will get to enjoy a reduction in tax rates. These reductions can either be 10%, or even 15%, which will depend on whether the companies export 24% of their products abroad or invest in the field of biotechnology or nanotechnology.
These incentives make Israel the 3rd best country in the world in the metric innovation, according to the 2016 Global Competitiveness Report.
Multinational companies who invest at least YS$2.5 million and hire at least 250 people in Israel may be eligible for a reduction in corporate tax rates. This reduction can be anywhere from 5% to 8%. Any dividends which the Israeli company distributes to another will also be completely exempt from corporate tax. The condition is that their source of the income comes from within the country.
Exempt from VAT in Free Trade Zones
Any goods which are imported in Israel’s Eilat free trade zone will be exempt from the VAT and other duties. The requirement is that traders should use or sell goods within the free zone.
Securing Investing in the Country
Investors can put their money in Israel with peace of mind knowing there is complete security. It’s because Israel is the 8th best jurisdiction in the world for protecting minority investors by the World Bank.
50 Signed Tax Treaties
Israel has signed tax treaties with over 50 countries in the world. These agreements mean a reduction in withholding taxes on payments abroad. China, Singapore, UK, USA, and India are just some of the countries that Israel has signed the treaty with.