Israel May Be Forced to Adjust Corporate Tax After U.S. Slash, Finance Minister Says

The corporate tax rate in Israel is to be reduced this month from 24 to 23 percent. But a lower, more attractive, rate in the U.S. could lead Israeli companies to consider moving there

Reuters
Reuters
Israeli Finance Minister Moshe Kahlon, November 24, 2017.
Israeli Finance Minister Moshe Kahlon, November 24, 2017.Credit: Moti Milrod
Reuters
Reuters

Israel may have to make adjustments to its corporate tax rate, Finance Minister Moshe Kahlon said on Saturday in response to a tax slash approved by the U.S. Senate.

U.S. President Donald Trump said the U.S. tax overhaul could cut the corporate tax rate from 35 to 20 percent once the Senate and House of Representatives reconcile their respective versions of the legislation.

The corporate tax rate in Israel is to be reduced this month from 24 to 23 percent. But a lower, more attractive, rate in the United States could lead Israeli companies to consider moving there.

"We will receive all the details from our companies abroad about the tax reform and we must address it," Kahlon told Channel 10's weekly politics show Hamateh. "What the danger is of companies here packing up and moving there? There are many implications. We will have to make adjustments."

Many Israeli high-tech companies have operations in the United States but research and development centres in Israel.

Israel's technology industry is one of the world's largest behind Silicon Valley, accounting for about 14 percent of the country's economic output, 50 percent of industrial exports and about 10 percent of its workforce.

Click the alert icon to follow topics:

Comments

SUBSCRIBERS JOIN THE CONVERSATION FASTER

Automatic approval of subscriber comments.

Subscribe today and save 40%

Already signed up? LOG IN

ICYMI

Dr. Claris Harbon in the neighborhood where she grew up in Ashdod.

A Women's Rights Lawyer Felt She Didn't Belong in Israel. So She Moved to Morocco

Mohammed 'Moha' Alshawamreh.

'It Was Real Shock to Move From a Little Muslim Village, to a Big Open World'

From the cover of 'Shmutz.'

'There Are Similarities Between the Hasidic Community and Pornography’

A scene from Netflix's "RRR."

‘RRR’: If Cocaine Were a Movie, It Would Look Like This

Prime Minister Yair Lapid.

Yair Lapid's Journey: From Late-night Host to Israel's Prime Minister

Lake Kinneret. The high water level created lagoons at the northern end of the lake.

Lake Kinneret as You’ve Never Experienced It Before