40 long-term planning becomes feasible thanks to predictable tax treatment throughout the corporate lifecycle.” Eran Lempert of EBN notes these changes “reduce deal-execution risk, shrink the tax cushion typically built into pricing, and enhance the predictability of post-closing operations for multinational groups,” while also “signaling a deliberate shift toward a more transparent and investment-friendly tax environment in Israel.” According to Meir Linzen of Herzog, the practical impact is clear: reduced friction and uncertainty, making Israel a more attractive base of operations. “The reform reflects a broader move toward increased certainty and clearer technical guidance,” he argues. “The draft regulations issued by the Ministry of Finance, along with the ITA’s circulars and position papers, indicate an effort to formalize methodologies in areas that often involve inconsistent treatment in matters such as profit attribution, IP valuation, and capital gains tax exemptions.” The prowess of Israel’s tech sector is widely recognized across the globe. The certainty and clarity this tax reform provides might be one of its biggest Innovations yet.
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