At a time when Israel is preoccupied with elections, in the wider world, far-reaching things are happening. No, it’s not the coronavirus and its economic impact. Rather, there are changes in global taxation policies that threaten to hit Israel in its soft underbelly – the high-tech industry.
Last November, the Organization for Economic Cooperation and Development approved a draft proposal on new rules for taxing the digital economy. The draft was circulated to 130 countries, all of which signed on to the previous round of global tax changes known as BEPS, meaning base erosion and profit shifting – the practice of multinational companies moving their profits, wherever possible, to low-tax countries.
