Treasury team wants tax break for tech
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A team appointed by Finance Minister Moshe Kahlon is calling to issue wide-reaching tax benefits to large and medium-sized high-tech companies whose research and development centers are in Israel.
The team wants to cut the tax these companies pay by means of the 2017-2018 Economic Arrangements Bill, which is passed alongside the state budget. The tax breaks would go to companies already in Israel as well as those that decide to relocate.
Companies with annual revenues above 10 billion shekels ($2.6 billion) would pay corporate taxes of only 6%, and only 4% on dividends. Companies with annual revenues below 10 billion shekels would pay 12% corporate taxes, as well as 4% on dividends.
Currently the corporate tax rate in Israel is 25%. High-tech accounts for 12% of Israel’s gross domestic product and 40% of exports. Israel seeks to keep major international players in the country and to attract new ones.
Finance Ministry sources estimate that this benefit would cost the state 200 million shekels a year in lost revenues, but say it could also bring in hundreds of millions of shekels, a figure that would grow over the years. (Moti Bassok)
RedKix raises $17 million in seed capital
An Israeli startup that seeks to change how the world uses email has raised $17 million, it announced. RedKix, launched by serial entrepreneurs Oudi and Roy Antebi, seeks to change the format of email exchanges to make them more like messaging platforms such as WhatsApp.
RedKix’s product is a chat-like email platform suited primarily for organizations. The service sits on top of existing email tools – currently it supports Microsoft Exchange, Office 365 and Google – and turns conversations into chats. Conversation partners who do not use RedKix will simply receive messages as standard emails.
The company raised $17 million in seed capital from investors including the fundraising arm of Salesforce, venture capital funds Wicklow and SGVC, as well as from investors Oren Zeev, Ori Sasson and Amnon Landan. Oudi Antebi told TechCrunch that the company needed to raise an unusually large amount of seed capital due to the complexity of its technology. It launched a private beta version on Tuesday. (Eliran Rubin)