We wish to bring to your attention that on April 1, 2024, as part of a comprehensive initiative by the Israel Tax Authority (“ITA“) to streamline bureaucratic processes and encourage foreign investments in the Israeli market, the ITA published a new “Green Track” pre-ruling form, for venture capital investment funds and private equity investment funds seeking to determine the applicable VAT treatment for management fees received by the management company for services provided to the fund (the “Green Track”).
With a goal of encouraging foreign investment in the Israeli hi-tech industry, the ITA heretofore grants preliminary approvals to different investment funds enabling a partial VAT exemption to foreign investors in accordance with the portion of their investments in the fund. Now, with the Green Track, the aim is to handle such applications uniformly and quickly.
To read the full update click here.
