Intel offices
Corporations' tax benefits in 2012: NIS 8 billion
Preliminary Finance Ministry estimates of tax benefits to companies in 2012 to encourage capital investments amount to some NIS 8 billion ($2.3 billion)
State tax benefits provided for companies under the Capital Encouragement Law have reached NIS 8 billon ($2.3 billion) in 2012, according to initial estimated formulated by the Finance Minister.
These findings were apparently recently presented to the Andoren Committee, headed by Finance Ministry CEO Yael Andoren, which examines the tax benefits policy for large corporations.
Corporate Tax
Amnon Atad, Calcalist
In exchange for Treasury's consent to increase company tax by further 0.5%, rise in income tax to be applied from second tax bracket
The original forecast for the scope of corporate tax benefits under the Capital Encouragement Law for 2012 stood at NIS 5.3 billion ($1.5 billion). This forecast was put together in mid-2010 and was included in the State budget.
The current estimate, therefore, is 50% higher than the original forecast.
The main reasons for the estimate deviation include the fact that tax benefits that are given under the law are unlimited by any ceiling sum, and because the Finance Ministry finds it hard to predict future developments in corporate profits, from which the scope of tax benefits are derived.
This week, the Finance Ministry published the annual State revenue report for 2011-2012. The report contains information and data about tax benefits until 2011. According to the data, the scope of corporate tax benefits in 2001 stood at NIS 7.2 billion ($2 billion). The four largest companies to get tax: Teva, Intel, ICL and Check Point.
