For the purpose of the payment of municipal taxes, a business which serves to market and manufacture software can be classified as a “software house”.
Activities that involve the upgrading or improvement of software is new production activity for the purpose of the classification of the property as a “software house”. The provision of technical support to customers does not constitute a provision of services that changes the Company’s principal business for “production” purposes.
Administrative Appeal 13687-09-16 Hashavshet (Production) (1988) Ltd. v. The City of Tel Aviv. Decision from March 8, 2018.
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