Solutions
The Incentives Group
The Incentives Group in the tax division specializes in providing guidance and advice regarding the encouragement laws and their implementation, recruiting support and financial incentives from governmental and other bodies in Israel and abroad. Our group’s experts combine unique knowledge in the fields of technology and tax, at the local level and in the international arena.
The incentives at Deloitte are managed as a global network, which allows us at any given moment to know what can be obtained from the viewpoint of governmental support anywhere around the world, and special-purpose teams have naturally been set up for their implementation.
This advantage allows us to assist any Israeli corporation when it undertakes international operations, to find the optimal and most suitable place for it, and conversely, to help global entities and companies find the best way of entering the Israeli market.
Among our solutions
- Advice and support in the field of tax benefits under the Capital Investment Encouragement Law, the Industry (Taxes) Encouragement Law, accelerated depreciation, expertise in the fields of Chapter 7 of the Capital Investment Encouragement Law – leasing of residential buildings.
- Preparing opinions and applying to the tax authority for rulings in the field of the encouragement laws.
- Due diligence (DD) when acquiring or investing in a company regarding compliance with the conditions for entitlement
to tax benefits and other incentives, as well as an analysis of the
consequences and operations required following such acquisition or investment, such as applying to the Israel Innovation Authority, the Tax Authority, or the Investment Authority to give notice of or obtain approval for such an operation. - Implementation of the provisions of Amendment 73 of the Capital Investment Encouragement Law and the preparation of documentation for identifying and attributing income to production, development, or marketing, including a numerical calculation of the aforesaid attribution.
- Examination of applicable grants and incentives, advice on and preparation of business plans, filing applications and support until the necessary approvals are obtained, and help with obtaining the grants while supporting the company’s targets.
- The Investment Authority – investment grants for the construction or expansion of plants in Development Areas A.
- Employment track – a grant for companies for hiring new employees from certain population groups.
- Smart money – a conditional grant for marketing expenses for the development of a target market abroad.
- Additional grants, such as for improving work productivity, the assimilation of industry technology 4.0, grants to contractors for the purchase of advanced construction equipment, greenhouse gas reduction and energy streamlining, etc.
- Assistance for companies in obtaining non-dilutive government
grants for the implementation of research and development (R&D) programs: R&D support tracks and invitations for tenders of the Israel Innovation Authority, the EU’s framework program (Horizon Europe), binational funds, U.S. grants. - Assistance for companies in obtaining Innovation Authority approvals for tax and other benefits, such as approval of R&D expenses under 20A, foreign resident R&D, qualified expertise for R&D, listing on the stock exchange and structural changes.
- Assistance and support for multinational corporations in preparing and submitting bids for tenders of the Innovation Authority on a variety of tracks, such as technological greenhouses or innovation laboratories (construction, investment and growth of startups).
- Assistance and support for companies when they first enter Israel regarding anything relating to locating a site for operations, from the viewpoint of an allocation of land, the construction of offices and plants, receiving incentives and advice on tax matters.
- Assistance and support for Israeli entities when leaving Israel in terms of choosing the location of operations from a business viewpoint, with reference to potential incentives and an examination of the issue of taxation.
- Assistance and support for all matters relating to ESG (environment and sustainability) incentives from local and international sources.
- Mapping and locating relevant incentives according to the company’s goals, in Israel and abroad, including collecting basic data about relevant incentives and grants.
- Assistance in the process of obtaining an allocation of land with an exemption from a tender in industrial zones under CEO Instruction 6.2.
- Assistance in locating land for constructing a new enterprise or for expansion of current enterprise.
- Raising credit and loans from bank sources, non-bank sources and funds, for a wide variety of needs including investments, cash flow, import and inventory, marketing, credit recycling, etc.
