Israel MOF Announces Approval of Draft 2025 State Budget, Economic Plan

The Israeli Ministry of Finance Nov. 1 announced the same date approval by the government of the draft 2025 state budget and economic plan. The draft budget includes measures to: 1) promote tax certainty in the high-tech industry by implementing new taxes on undistributed profits of holding companies, expanding structural changes eligible for tax deferral, and simplifying eligibility conditions; 2) provide certainty regarding capital gains tax exemptions for foreign investors by defining permanent establishment (PE) criteria, clarifying business activity classifications, exempting specific activities from PE requirements, setting a 32 percent tax rate on success fees with a VAT exemption, and ...