In accordance with the two precedent rulings of the tel Aviv district court handed down in recent months, operating in Israel for the international corporations will significantly increase their tax payments.
According to the judgements of the tax Department against companies «Conter» and «Finisar», companies are required to pay the tax allocated to the workers by the Israeli centers of options.
Operating in Israel multinationals such as Google, Facebook, IBM, eBay, etc., pay taxes in Israel on income, calculated as 5%-15% of the cost of overhead (salaries, rent of premises, purchase of equipment)
The court’s decision obliges them to include the cost of options in costs, calculates the amount of the tax. As The Marker notes, these precedents will increase the tax payments of corporations in Israel to tens of millions of dollars.