Israel’s proposed legislation on taxing ‘trapped profits’ is fueling concern in the business community, as the Tax Authority seeks to replace the 2017 Section 77 framework with far more sweeping rules. At the annual tax conference hosted by Fahn Kanne Grant Thornton and S. Horowitz, Adv. Leor Nouman, Head of the Tax Department, warned the bill is nothing short of a revolution in corporate taxation. He said the Finance Ministry is moving forward without weighing the consequences: harming stability, creating uncertainty, and pushing capital abroad. The proposal affects roughly 15,000 private companies holding NIS 143 billion in profits, projected to yield NIS 10 billion for the state in 2025.
