close
close

Yiamastaverna

Trusted News & Timely Insights

    • High-tech workers accounted for around 36% of all income tax payments – Israel News
    Alabama

    High-tech workers accounted for around 36% of all income tax payments – Israel News

    Idris Bevan Posted on

    About 24 percent of all tax payments in Israel in 2020 came from companies and wages in the high-tech sector, and in 2021, high-tech employees made about 36 percent of all income tax payments, the Israel Innovation Authority said in a report published on Tuesday.

    This shows the central importance of this sector for the Israeli economy, the authority stressed, describing it as an important driver.

    The report also highlighted the importance of foreign high-tech companies to the Israeli economy, concluding that while they represent only 0.3 percent of all companies in Israel and their employees make up only about 20 to 25 percent of Israel’s high-tech workforce, their labor and corporate taxes account for over a third of the high-tech industry’s total contribution to government revenue.

    Revenues from the high-tech sector amounted to about 9.2 percent of the 2020 state budget, the agency said. This income is generated by the sector’s workers, and 85 percent of state revenues came from them, while 15 percent came from corporate taxes, the report said.

    The Israeli economy’s dependence on income taxes from this sector is growing, the authority said, stressing that income taxes collected from high-tech workers increased by 66 percent in real terms between 2016 and 2021.

    The offices of the Israel Innovation Authority in the Jerusalem Technology Park. (Source: NETA/WIKIPEDIA)

    Women paid less than 19 percent of the income tax of high-tech workers, even though they make up about a third of the industry, the report said. This is likely due primarily to the lower average salaries for women in this field.

    Underrepresentation of other sectors

    Just over 97 percent of income tax payments in the high-tech sector in 2021 came from non-ultra-Orthodox Jewish workers, and 57 percent of those taxes came from non-ultra-Orthodox Jewish men in central Israel, demonstrating that numerous population groups are underrepresented in this sector.

    Based on the data from the report, the authority formulated recommendations, including increasing diversity in the high-tech sector to broaden the employment base and removing barriers to multinational companies operating in Israel, where they exist.

    The agency also called for increased government investment in R&D infrastructure and deep-tech start-ups to maintain Israel’s technological lead.

    “This publication underlines the strategic importance of the high-tech sector for the Israeli economy and government revenues,” said agency head Dror Bin.

    Stay up to date with the latest news!

    Subscribe to the Jerusalem Post newsletter

    “High-tech serves as a ‘growth engine’ of the economy and a ‘shock absorber’ in times of crisis. The findings from this analysis underscore the importance of government action to protect the sector and ensure its continued growth, even in times of economic slowdown.”



    Tagged:

    LEAVE A RESPONSE

    Your email address will not be published. Required fields are marked *

    Idris Bevan
    View all posts

    You Might Also Like

    ads