An amendment to the Law for the Encouragement of Capital Investments has been published by Israel on 29th December 2016, which was part of the changes made in the framework of the 2017-2018 Law on Economic Arrangements. Corporate income tax (CIT) rate reduction from 16% to 12% in case of qualifying companies with turnover of less than NIS 10 billion. Reduction in CIT rate to 7.5% from 9% for eligible corporations located in a ā€˜priority zoneā€™. A 4% reduced withholding tax rate applies on dividends derived from ā€œpreferred technological incomeā€ and distributed to a foreign resident corporate recipient. A discount CIT rate of 6% applies for ā€˜preferred companiesā€™ with a ā€˜special preferred technological enterpriseā€™ generating ā€˜preferred technological incomeā€™.