In October, Calcalist reported that
the authority is updating its regulation to award small startups the same benefits, out of a recognition that the Israeli tech sector is a major growth engine for the economy. At the time, two people from the authority confirmed the report on condition of anonymity.
Wednesday’s decision awarded the benefits to a company employing six people (three of them in research and development and three in marketing) that has all of its intellectual property registered in Israel. The pre-ruling could go on to affect a few dozen companies each year. Tax authority executives told Calcalist on condition of anonymity that as the pre-ruling was individual, companies with less than six employees could also apply for the benefits if they fit the criteria.