Israel to Increase Incentivisation for Early Stage Investment

Tel Aviv Light

The Israeli Ministry of Economy and Ministry of Finance are resurrecting the Angels’ Law in the Israeli high-tech industry.

An amendment to the existing law has been designed to encourage early stage investment by entrepreneurs. The essence of the Act is to provide private investors who invest in start-ups the ability to immediately register their investments as tax deductible for that tax year.  The amendment, which is widely tipped to be approved by government, is expected to serve as an additional avenue of benefits that investors can enjoy alongside the existing track currently available in Israeli law.

In a conversation with “Calcalist” Naftali Bennett, the Israeli Minister for Economy, said that: “We are bringing a revolution in the Angels’ Law. Profound revolution.The law is designed to bring people with money to invest in start – up. Up until now the law did not succeed because of the small details. Up until know it was very complicated to invest in companies that the investor knew in retrospective if he gets credit for investment. The new change we made will let the investor know as soon as he is investing if he gets approval.

The revolution here is in the small details. Absolute certainty as soon as the investment is made that it will be recognized as an expense as soon as the Chief Scientist gave his signature to the transaction it’s approved. Now the company can become Check Point and you enjoy the benefit.” Bennett then went on to say that “there is no similar law like this in the world. It 100% of the investment will be recognized in the same year. You will not find a law that recognizes the entire investment as tax deductible in the tax year”.

2014-07-18T09:38:16+00:00July 18th, 2014|Uncategorized|0 Comments