The Cabinet today took another step in advancing the national cyber park in Beersheva by approving tax breaks for cyber companies that move there. The proposal, which was led by Israel National Cyber Bureau Head Dr. Eviatar Matania and Prime Minister's Office Director General Harel Locker, will encourage leading multi-national and Israeli cyber companies to establish operations in the national cyber park.
Prime Minister Benjamin Netanyahu said, "The State of Israel's cyber capabilities are a strategic necessity. There is a meeting here between global economic opportunity and strategic need, and we must take determined action to lead in both of these areas."
He added, "Cyber continues to develop as a main component of our national security and also as an important layer of the Israeli economy. There is great importance in strengthening the cyber park in Beersheva - which combines capabilities designed to maintain and strengthen the State of Israel in the cyber field in relation to the world and thus serves as a unique center of global innovation."
Locker said, "Tax breaks that focus on encouraging cyber defense companies to go to Beersheva and the south are critical at this stage in which Israel is positioning itself in the cyber field and is competing against other countries for international companies. There is a unique triangle in Beersheva in the cyber field that includes academia, the IDF and the government; to this, today, we are adding an encouragement for the industry."
The model for the tax break is based on lowering the cost of employing workers at the park. The break for an employee will be given by reducing the cost of the taxes that the employer must deduct from the employee's income, and will be limited by this amount (similar to the break for employers as defined by Article 12 of the Eilat Free Trade Zone Law).
Published by Globes [online], Israel business news - www.globes-online.com - on July 6, 2014
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