Israeli budget reduces corporate tax rates, expands corporate tax incentives

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The Israeli Parliament has approved the Israeli Budgetary Law for 2017 and 2018, which reduces the regular corporate tax rate.

The Israeli Parliament on December 22, 2016, approved the Israeli Budgetary Law for 2017 and 2018 (the ‘Budget Law’), which, among other changes, reduces the regular corporate tax rate under the Israeli Income Tax Ordinance and expands corporate tax incentives for companies with qualifying operations under the Encouragement of Capital Investments Law, 1959 (the ‘Encouragement Law’).