The Israeli Knesset Finance Committee agreed that corporate taxation will be lowered to 12% for high-tech companies in central Israel and 8% for all the companies meeting the criteria in the Law for the Encouragement of Capital Investments that are located in outlying areas, including Jerusalem. The Ministry of Finance is also agreeing to provide special NIS 50 million in grants for encouraging high-tech to the Jerusalem and Beersheva municipalities. The current maximum tax rates in Israel are 25% companies tax and 20% tax on dividends.
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