Recent developments in Israel’s tax regime reflect a deliberate shift from ambiguity toward greater certainty, aligned with international standards. Dr. Eran Lempert, Head of our Tax Department, notes that the draft regulations published as part of the proposed reform seek to codify the preferential tax treatment historically available to foreign investors, allowing transaction parties to assess tax outcomes upfront rather than relying on tailored and often difficult to obtain pre-rulings from the Israel Tax Authority.
According to Dr. Lempert, the Israel Tax Authority’s new R&D circular formalizes transfer pricing parameters and provides a clearer framework for asset and IP acquisitions, as well as for the structuring and operation of post-transaction R&D centers.
Collectively, these measures reduce deal-execution risk, shrink the tax cushion typically built into pricing, and enhance the predictability of post-closing operations for multinational groups.
Read the full article on Israel Desks Magazine here
