Income Tax Ordinance Amendment (Taxation of a Traded Venture Capital Fund) Bill

What does the bill do?

The bill defines in law for the first time a traded venture capital fund: a research and development partnership listed on the stock exchange in Israel whose investments are in high-tech companies or essential infrastructure. The bill sets that the income and profits of such a fund will be exempt from tax, and only its investors will be taxed, at a rate of 25% on the profits distributed to them. In this way, the bill changes the existing situation in which these public partnerships are subject to corporate tax at a rate of 23%, and then the investors pay additional tax, while private venture capital funds are taxed only at the investor level.