NEW YORK (May. 10)
More than 30 American companies have located or expanded plants in Israel during the last year, and ten more have taken the first steps toward setting up plants since January 1976, the Government of Israel Investment Authority announced here.
The announcement was made as a new and greatly broadened “Law for the Encouragement of Capital Investments” was introduced for discussion in Israel’s Knesset. This proposed new law expands certain financial incentives and benefits available to foreign investors.
Among those on the government’s list of companies who have expanded existing facilities in Israel, according to the Investment Authority, are: Miles Laboratories. General Telephone & Electronics, Control Data Corp., Motorola, Inc. Among those making new investments are Teledyne, Inc., and United Merchants and Manufacturers, Inc. These are in addition to the many other American companies already located in Israel; among which are Zenith Radio Corp., Baxter Laboratories, Inc., Helena Rubinstein, Witco Chemical Corp., American Can Co., Chromalloy American Corp., Hudson Pulp and Paper.
In order to make business conditions even more attractive to foreign companies, the Israeli government has incorporated additional cash grants and tax concessions into the new investment law. The law is expected to be passed retroactively from April 1, 1976, the Investment Authority reported.
The new investment law, when combined with the still to be ratified U.S.-Israel Tax Treaty, will, in many cases, grant American subsidiaries in Israel a tax situation similar to that of American subsidiaries in zero-tax countries. This tax-break will put Israel in a very favorable position when compared with countries which charge no corporate income tax, according to the Investment Authority.