Intel Israel Ltd. received a tax break of NIS 1.02 billion in 2010 alone, according to a cross-referencing of data from the State Revenues Administration and Israel Tax Authority data provided to "Globes" following its petition to the courts.
The analysis found that Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) received the biggest tax break in 2010 - NIS 2.3 billion. It was followed by Intel Israel, and then by Israel Chemicals Ltd. (TASE: ICL), which received NIS 380 million. Check Point Software Technologies Ltd. (Nasdaq: CHKP) received a tax break of over NIS 281 million. Unlike Teva, Intel Israel does not have a 0% tax rate. The four companies mentioned above received 70% of the tax breaks granted in 2010 - NIS 5.6 billion.
Intel Corporation (Nasdaq: INTC) operates several sites in Israel, the most important of which is the fab in Kiryat Gat. The fab was upgraded, after the company received large government grants through the Investment Promotion Center under the Law for the Encouragement of Capital Investment. Intel Israel has 8,000 employees at its cites in Jerusalem, Haifa, Kiryat Gat, Petah Tikva, and Yakum.
Intel Israel data state that it exported $2.7 billion in goods in 2010, and made $264 million in reciprocal procurements. The company exported $20 billion in goods in 1999-2010.
In addition to the tax breaks, since Intel Israel made its first investment in a fab in Kiryat Gat in 1996, it has received $1.4 billion in three rounds of grants to upgrade the fab. In 2011, Intel Corporation wanted to invest $5 billion in the Kiryat Gat fab in exchange for a $600 million grant from the Investment Promotion Center, but the company ultimately decided to build the fab in Ireland.
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2013
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