Zim pays NIS 1.6b tax to boost Israel's coffers

Zim Photo: Shutterstock
Zim Photo: Shutterstock

Estimates are that Zim will have to make tax payments of NIS 2.6 billion for 2021 and the NIS 1.6 billion paid last month was an advance on this sum.

Israel collected NIS 47.4 billion in tax revenues in January 2022, the Ministry of Finance reported last week. The report also mentioned that the Israel Tax Authority received an exceptional tax payment of NIS 1.6 billion. An investigation by "Globes" found that the amount was paid by Zim Integrated Shipping Services Ltd. (NYSE: ZIM).

In 2021, Zim swung to profit after years of losses and "Globes" revealed that the shipping company had demanded that the state enact legislation, which would cut Zim's tax burden significantly, and that if this would not done it would transfer its assets to another country.

Zim held an IPO on the New York Stock Exchange (NYSE) in January 2021 at a valuation of $1.7 billion, after money, and has since seen its share price jump 366%, giving a market cap of $8.3 billion. The jump has come following the company's strong financial results due to the global shipping boom, making Zim the country's most profitable company.

Estimates are that Zim will have to make tax payments of NIS 2.6 billion for 2021. The NIS 1.6 billion paid last month was an advance on this sum, ahead of the company's financial report.

Zim said, "Zim can confirm that during December and January an advance tax payment was made for 2021."

Published by Globes, Israel business news - en.globes.co.il - on February 14, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Zim Photo: Shutterstock
Zim Photo: Shutterstock
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