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New Tax Incentives for Startup Investors Approved

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Monday, January 4th, 2016

Knesset Finance Committee accepts a revision to the Angel Law that will encourage investment in Israeli startups.

As reported in Globes;

The Knesset Finance Committee approved an amendment to the Angel Law on Tuesday, granting significant tax benefits to startup investors. Under the revised legislation, a new course will be added to the angel investor law which incentivizes investment in young startups to assure the angels of these benefits at the time of the investment.

The changes further determined that startups from Israel’s periphery will be legally recognized as startups for five years, unlike those from the country’s center, which receive the designation for four years.

The revision was intended to maintain Israel’s comparative advantage in knowledge-intensive industries. The Office of the Chief Scientist within the Ministry of Economy and Industry claimed the tax incentives for startup investors will allow these companies to carve out a space in the market.

“We are talking about expanding the toolset that the Chief Scientist can offer companies,” said Chief Scientist of the Ministry of Economy and Industry Avi Hasson on Tuesday.

Ministry of Finance Budget Director Amir Levi said, “The amendment to the Angel Law is one of many steps we are promoting to increase the growth of the market and encourage investments.”