Google's high-tech acquisition will yield high taxes to Israel

Article Summary
According to estimates, Google will pay about $516 million in taxes on the deal of acquiring Israeli high tech company Waze, while promising to keep its workers in the country.

Google’s 2013 acquisition of Israeli Waze was not just a significant exit for the company, but also a source of revenue for Israel, which will collect a revenue of NIS 1.8 billion [some $516 million] from taxes. According to estimates, the company paid about one billion NIS [$286.5 million] on the deal itself, which totaled $1 billion, and it will pay NIS 800 million, or $230 million, for transferring Waze’s intellectual property from Israel.

The Office of the Chief Scientist at the Ministry of the Economy will also receive a nice revenue following the removal of Waze’s intellectual property from the country. The chief scientist, who supported Waze at its launch with a sum of about a million dollars, will receive $3 million as a result of Google’s commitment not to remove the company’s workers from Israel.

At the time Google acquired Waze, a crowd-sourced traffic-mapping application, it committed not to remove its activity from Israel, and today it’s even expanding the company’s activities and hiring new workers. According to estimates, Waze has hired 30 additional workers since the acquisition, and has remained in Raanana, near Tel Aviv.

International high-tech companies transfer intellectual property according to the varying needs of the company. One of the largest transfers in the past was done by HP, when it transferred the intellectual property of the Mercury company, which it bought for about $4.5 billion.

Found in: israeli technology industries, internet, high tech, computers, business

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