Tax Authority Clarifies High-Tech Benefits for Marketing Assets

Israel's Tax Authority issued Income Tax Circular 08/2026 to clarify how marketing assets such as trademarks, brand names and customer lists affect the reduced corporate-tax rates available to technology companies. The policy says a marketing asset will not reduce eligibility when the income attributed to it is no more than 10% of the company's technological income. Local assessing officers need prior written approval from the authority's professional division before excluding benefits on this basis. Companies may also seek an advance tax ruling to determine the treatment before filing.