preface

92
INVESTMENT INCENTIVES AND TRADE ADVANTAGES
The eligible areas are: Priority Development Areas "A" and "B"; and
designated towns for the minority population (Arab, Druze, Circassian)
or the Ultra-Orthodox Jewish population.
The enterprise must pay its employees the following minimum wages at
least:
♦ Minority and Ultra-Orthodox towns - the minimum wages.
♦ In all other eligible areas – NIS 6,750 NIS monthly wage.
Enterprises should hire a minimum number of employees, depending on
the region and the track (new plant or expansion).
7.6.6. Intra-Plant Training
The Ministry of Labor and Social Affairs assists companies (mainly
manufacturers) in providing in-house training for unemployed people
and undertaking to employ them. Training is provided either "on the
job" for unskilled workers or those who have completed vocational
courses but lack experience.
7.6.7. Quality Management Project
The project caters to industrial enterprises employing 50 to 500 people,
for the introduction of modern management techniques. The grant
covers 50% of consulting fees, up to 400 hours. The fee must be used
within a period of 6 to 12 months.
7.6.8. “Preparation for Exposure” Fund
The fund is designed to help industrial enterprises gear up for
competition due to exposure, and assists them in increasing imports and
reducing customs and import duties. Grants may reach the equivalent of
US$ 500,000 and government guarantees are available as well.
7.6.9. Approved Foreign Expert
A foreign resident approved by the Investment Center as a foreign
expert, is liable to Israeli income tax at a rate of up to 25% during the
first three years of employment. This period may be extended by an
additional year. The reduced tax rate is applicable to a salary of up to
US$ 75,000 per annum, plus social benefits.
BDO Israel