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Posted on Nov 06, 08:32AM | IANS
The Israeli parliament Monday allowed foreign companies to pay reduced tax if they promise to invest half of their profits in the country.
In this regard, a bill was passed with 38 Knesset (parliament) members voting for it and 21 against it, Xinhua reported.
The law has caused a stir among left-wing and social justice activists, who protested the control of the tycoons (wealthy families) over the Israeli market.
International companies in Israel have up until now enjoyed tax breaks on condition that they pay back the money they've made in Israel.
However, if the companies chose to take their profits outside of Israel's borders, the companies would have to pay a tax rate of 25 percent on their revenues.
The law is therefore termed the "locked revenues" law.
The law is expected to enable companies to unfreeze much of their revenue and get a larger tax break. The tax rate could be as low as only 6 percent of the revenues.