Israeli Pharma Giant Teva Will Make NIS 336 Million Tax Payment and Free Up 'Trapped Profits'

In return, company will invest hundreds of millions in local manufacturing plants.

Teva Pharmaceutical Industries announced Thursday that it had informed the Israel Tax Authority that it will be making a NIS 336 million tax payment pursuant to the provisions of the investment encouragement law. The statute allows Israeli companies to use tax-exempt profits accumulated through 2011 to pay shareholders dividends subject to the payment of taxes at a reduced rate.