Eyeing Tax Benefits, Amdocs Tech Firm Seeks to Transfer Intellectual Property to Israel

Israel is trying to attract international companies to relocate to Israel by allowing them to pay a reduced rate for intellectual property

Send in e-mailSend in e-mail
The Amdocs office in Ra'anana.
The Amdocs office in Ra'anana.Credit: Amdocs

The Amdocs software company has begun a preliminary investigation with the Israel Tax Authority regarding the transfer of its intellectual property to Israel.

Such a move which would enable it to profit from tax benefits in Israel and reduce the effective tax rates it currently pays.

Apparently, this move is being driven by Amdocs' desire to pay a reduced rate of 6% for intellectual property. This reduced rate was set up in order to attract international companies to relocate to Israel.

Transferring intellectual property to Israel could incur great costs, and Amdocs is trying to determine whether the move ultimately benefit it, and how much.

Amdocs is a veteran high-tech corporation that was established almost 40 years ago in Guernsey. The company develops systems and IT solutions for telecom companies, and is traded at a valuation of $10.6 billion.

Its revenues in 2020 amounted to $4.17 billion, with its net profit being $583 million. The company’s effective tax rate was 14.7%, meaning that it paid $85 million in taxes that year. The company’s revenues are growing at a moderate pace, 8% cumulatively in the last three years, and its net profit rose by 14%.

Comments