The Knesset Finance Committee on Sunday approved a proposal that would allow foreign companies operating in Israel to export profits earned in Israel. Companies that wish to take profits to their foreign headquarters were prevented from doing so by the Treasury, which said that companies that received financial assistance and tax credits from the government. The proposal will now be table for Knesset approval
Under the proposal, large companies such as Intel, Teva, and Cisco will be able to use some of NIS 120 billion and send it abroad. The government will tax it a lower rate, on condition that some of the money remain in Israel and be invested here. Treasury officials said that under the deal, the government stood to earn some NIS 30 billion.