On March 13, 2018 a tax bill passed its final hearings in the Knesset, whereby issuance expenses are to be recognized and deductible for tax purposes. The bill proposes that every company or partnership that issues equity and is listed on the Tel-Aviv Stock Exchange (TASE) will be able to deduct the issuance expenses of shares or participation units that are listed on TASE. This measure is expected to provide more Israeli companies with an incentive to go public, giving the Israeli public the opportunity to be part of the success of the Israeli companies.
Ittai Ben-Zeev, TASE’s CEO today said: “We thank the chairman of the Finance Committee, MK Moshe Gafni, who has resolutely and professionally promoted and advanced this law, realizing the importance of encouraging the local capital market, which is of benefit to the whole economy, and, of course, Minister of Finance, Moshe Kahlon for his support. The bill is expected to encourage new companies to list on TASE and to enhance the attractiveness of the Israeli capital market as the “go-to” source for Israeli companies wanting to raise equity. We will continue our considerable efforts to encourage more and more Israeli companies to be part of the local capital market and look forward to growth in the number of new companies joining TASE this year”.
2017 saw a record of 17 new offerings – more than in all the preceding five years – through which the companies raised some NIS 3 billion. This positive trend has continued into this year and additional companies are expected to join TASE in the coming weeks. The passing of the law is the latest of a series of regulatory reliefs and other measures intended to incentivize more and more Israeli companies to raise equity by means of making public offerings on the Tel-Aviv Stock Exchange.
