On 16 May 2017, the Finance Committee of the Israeli Knesset (parliament) approved regulations to finalize the country's new IP regime with the modified nexus approach developed as part of BEPS Action 5. The IP regime itself was enacted in December 2016 ({News-2017-02-03/A/4- previous coverage}) pending final regulations to ensure the regime is in line with the modified nexus approach.
The IP regime provides for a reduced corporate tax rate on qualifying IP-related income, including qualify…