Undistributed Profits

The Israel Tax Authority is considering a review of the 'trapped profits' law, which imposes a tax burden on small and medium-sized businesses while exempting large corporations.

The undistributed profits reform, which generated 15–20 billion shekels in revenue, is facing scrutiny due to market distortions in the income-producing real estate sector. The Tax Authority is considering targeted adjustments as part of the upcoming Economic Arrangements Law.