Israel drafts legislation to attract inward investment

The Israeli government has drafted legislation that paves the way for holding companies to be exempt from capital gains arising from the sale of shares and tax on dividends. It also proposes a change in how property investment trusts are treated.

The mood of the business community seems to be positive in that these measures are bound to make Israel a more attractive proposition for inbound companies. However, tax practitioners are concerned that this come on the back of the 2003 changes in tax legislation which are yet to have been bedded down.