US software giant Microsoft is in talks to expand its activity in Israel and to invest hundreds of millions of dollars more in Israel, "Globes" has learned.
The company is already committed to setting up a data center in Israel in 2021, and this may be brought forward. Another project on the agenda is expansion of the company's chips activity, and it may set up an R&D center in this area. Google recently announced that it was setting up a similar R&D center in Israel.
10 days ago, on the Friday before the elections, Microsoft CEO Satya Nadella spoke to Prime Minister Benjamin Netanyahu and set out to him details of his company's planned new investments in Israel, which should total between $1 billion and $1.5 billion.
"Globes" understands that Nadella told Netanyahu that Israel is, "a very important development center for Microsoft." Nadella made no requests for government incentives during the conversation and Israel made no commitments.
Details of the investment, the commitments that the company will undertake, and the benefits that it will receive are matters that have already arisen in recent weeks in talks between senior Microsoft executives and the Prime Minister's Office and members of the National Economic Council, among them its head Avi Simhon.
Microsoft already enjoys a low tax rate of 6% on profits from its IP in Israel - regular corporation tax is 23% and other smaller tech companies pay between 7.5% and 12%.
In Israel, the expansion of operations and planned investments are being led by Microsoft Israel country general manager Ronit Atad. In the coming days, the company is expected to report more detailed plans for its expansion in Israel.
Published by Globes, Israel business news - en.globes.co.il - on March 29, 2021
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