Israel Chemicals Ltd. (TASE: ICL) received a tax break of $121.3 million (NIS 450 million) in 2012, under the Law for the Encouragement of Capital Investment, according to the company's financial report, published today. Israel Chemicals' tax breaks under the law totaled $691 million (NIS 2.6 billion) over the past five years, slightly less than the tax breaks enjoyed by Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA).
The financial report also states that, in 2012, Israel Chemicals paid the government $125.4 million in royalties, compared with $76.4 million 2011. In the past five years, the company paid $379.9 million in royalties, just over half the tax break it enjoyed over the same period.
Israel Chemicals' profits exceed $1 billion a year, and $6.6 billion over the past five years.
Israel Chemicals paid $221 million in taxes in 2012, for an effective tax rate of 14.4%, compared with the companies tax rate of 25%. Under the Law for the Encouragement of Capital Investment, some of the company's enterprises are classified as "approved enterprises" and others are classified as "beneficiary enterprises", which pay a 0% tax rate under the ordinary track and an 11.5% tax rate under the Ireland track. Israel Chemicals has enterprises which are classified under both tracks.
Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2013
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