Israeli Treasury Trip to Woo U.S. Tech Firms Postponed Until Trump Tax Reforms Approved

The trip to Silicon Valley was to attempt to attract U.S. tech firms with Israel’s new low tax rate on intellectual property

U.S. President Donald Trump speaks as Rex Tillerson, U.S. secretary of state, left, listens during a cabinet meeting at the White House in Washington, D.C., U.S., on Monday, Nov. 20, 2017.
Kevin Dietsch/Bloomberg

A delegation of top Israeli treasury officials is delaying a trip to California’s Silicon Valley aimed at wooing U.S. technology companies with Israel’s new low tax rate on intellectual property.

The decision to postpone the trip by three months came after the executives they were due to meet said they couldn’t assess Israel’s new rules until the Trump tax reforms, which include a big cut in U.S. corporate taxes, now being debated in the U.S. Congress, were approved.

The new Israeli rules encourage multinationals to consolidate their intellectual property ownership and profits in Israel by offering a corporate tax rate of just 6% on income from intellectual property.

Despite the delay, officials are in talks with HP about moving some $500 million worth of intellectual property from the U.S. company’s Israel-based Indigo printing unit that it transferred out of Israel several years ago.

Two other unidentified companies are also in talks about moving intellectual property to Israel.