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Amdocs, Nilit granted tax exemptions
27 Mar '06
2 min read
Textile majors from Israel - Amdocs and Nilit Ltd are scheduled to receive additional five-year tax exemptions over and above the ten-year exemptions granted earlier in standard Investment Promotion Center tax break track.
The granting of high foreign investment company status by Investment Promotion Center of the Ministry of Industry, Trade and Labor has enabled the two companies to avail tax exemptions.
Tax exemption is savings worth millions of dollars in taxes.
Amdocs is considering expanding its Shaar HaNegev plant, whereas Nilit is pondering over expanding of its Migdal HaEmek factory.
Amdocs and Nilit submitted their requests for extensions as per a clause in Encouragement of Capital Investment Law (5719-1959).
Company can receive tax exemption status for 15 years if every year at least 80 percent revenue comes from export and at least $20 million is ploughed back into the company.
Investment Promotion Center Director Hezi Zaieg CPA said, the decision for granting high foreign investment company status was undertaken as the companies planned to have major investments in Israel which in turn would generate employment opportunities for workers.
Amdocs, has a $6.9 billion market capitalization with workforce of 4,000 in Israel, of which 300 work at Amdocs factory at Sderot.
Nilit, is owned by Chairman Michael Levy and his family, alongwith Markstone Capital Partners Fund, producing nylon thread for textile industry.
Nilit employs 700 workers at its Migdal HaEmek plant and exports 95 percent of its produce.
In January, Nilit acquired major European thread manufacturer Invista for $400 million in January which makes it the largest manufacturer in Europe.
Nilit's annual turnover was $225 million and Invista's was $140 million before the acquisition.
The granting of high foreign investment company status by Investment Promotion Center of the Ministry of Industry, Trade and Labor has enabled the two companies to avail tax exemptions.
Tax exemption is savings worth millions of dollars in taxes.
Amdocs is considering expanding its Shaar HaNegev plant, whereas Nilit is pondering over expanding of its Migdal HaEmek factory.
Amdocs and Nilit submitted their requests for extensions as per a clause in Encouragement of Capital Investment Law (5719-1959).
Company can receive tax exemption status for 15 years if every year at least 80 percent revenue comes from export and at least $20 million is ploughed back into the company.
Investment Promotion Center Director Hezi Zaieg CPA said, the decision for granting high foreign investment company status was undertaken as the companies planned to have major investments in Israel which in turn would generate employment opportunities for workers.
Amdocs, has a $6.9 billion market capitalization with workforce of 4,000 in Israel, of which 300 work at Amdocs factory at Sderot.
Nilit, is owned by Chairman Michael Levy and his family, alongwith Markstone Capital Partners Fund, producing nylon thread for textile industry.
Nilit employs 700 workers at its Migdal HaEmek plant and exports 95 percent of its produce.
In January, Nilit acquired major European thread manufacturer Invista for $400 million in January which makes it the largest manufacturer in Europe.
Nilit's annual turnover was $225 million and Invista's was $140 million before the acquisition.
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