Finance Ministry Reportedly Weighs Capital-Gains Tax Exemption for Startup Shareholders

The Finance Ministry is considering a capital-gains tax exemption for startup shareholders modeled on the United States' Qualified Small Business Stock incentive, according to a report published on October 10. The reported aim is to reduce incentives for Israeli technology entrepreneurs to relocate to the United States and for their companies to register there. The proposal concerns actual shares rather than employee options. The ministry has not settled an exemption ceiling, eligibility conditions or whether other benefits would be reduced in exchange, and no implementation date or adopted policy was reported.