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Israeli high-tech sector warns tax change may harm R&D centers and economy

Feb. 15, 2021 High-tech executives are warning that the Israel Tax Authority could undermine the work of many of the hundreds of multinational research and development centers in the country if it goes through with plans to revise the way many of them are taxed. The authority is weighing a plan to stop calculating taxes based on the cost-plus system, in which a fixed rate of profit is derived from the center’s costs. Instead, it would tax them based on their parent company’s global profits and the local center’s estimated contribution to them. Why Bibi could play ball with Biden over Iran. Listen to Alon Pinkas

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