BREAKING NEWS

4 companies get 70% of investment benefits, pay 3% tax rate

MAY 5, 2013 13:59

The four largest companies eligible for capital investment tax credits received 70% of the NIS 5.6b in benefits in 2010, paying an effective tax rate of 3%, according to a Finance Ministry report released Sunday.

Though they were not mentioned specifically in the report, the lucky four companies, which comprised the top percentile in the study, were Teva, Intel, Israel Chemicals (ICL) and Checkpoint, according to a Calcalist analysis. The remainder of the top ten percent paid an effective rate of 10.5%, while the lowest ten percent paid 20.8%.

In the seven-year period of the study, which only looked at companies eligible for capital investment benefits, the level of benefits over doubled, from NIS 2.3b to NIS 5.6, while the corporate tax rate steadily declined from 36% to 25%.

The profits of the four companies in the top percent rose from 3.2b in 2003 to 18.2b in 2010, while the percentage of their non-taxable income rose from 17% to 77%. Their 70% share of capital investment incentives was up from just 32% in 2003.

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