Herzog Fox & Neeman's Government Incentives practice has many years experience in advising all aspects of governmental incentives, including innovation incentives, research and development incentives, and tax incentives.
Herzog Fox & Neeman's Government Incentives practice takes a multidisciplinary approach towards incentives matters, which combine between regulatory, tax, IP and transactional laws, as well as business and practical aspects.
Not surprisingly, our practice is constantly acknowledged by our clients as a critical factor in promoting and facilitating innovation in Israel (through M&A transactions, investments, JVs, commercial relationships, and international cooperation) while protecting the business interests of our clients (including their tax positions, IP assets, and freedom to use their technologies).
Our practice members regularly appear before the Israeli Innovation Authority (IIA), formerly known as the Office of the Chief Scientist (OCS), in all matters concerning IIA funding, royalty payments, use of IIA funded know-how, compliance, enforcement and voluntary disclosure.
The practice achieved break-through approvals and rulings in difficult compliance cases and in complicated transactional matters, including in the following issues:
Transferring or sharing IIA funded know-how in Israel or abroad, Assignment of knowhow and patents, Licenses, Grant of Access, Maintenance and Support services, Escrow agreements, Loan and Pledge agreements, Disaster Recovery, Clinical Trials, Transfer of Manufacturing.
Payment to the IIA - Transfer fees, license fees, royalties, fines and penalties.
Compliance with the Innovation Law (R&D Law).
Criminal aspects and voluntary disclosure
IIA approvals required to obtain tax benefits – Section 20A approvals (R&D expense deductions), Section 51 approvals (provision of R&D service to non-Israeli customer).
The practice also successfully advises international and Israeli clients on obtaining IIA incentives for innovation and research and development, including:
Cooperation agreements between multinational corporations and the State of Israel regarding R&D cooperation with Israeli startups.
Franchises to form and operate government-supported Incubators.
Franchises to form and operate government-supported Innovation Labs.
Formation of R&D centers for international financial institutions.
Participation in government funded R&D consortia.
R&D programs for cooperation with research institutions.
Our practice is regularly involved in statutory and regulatory reforms concerning the IIA and Israeli innovation policy, and our practice members are invited to appear before the Committees of the Israeli Parliament, the Ministry of Finance, the IIA and the Israeli Tax Authority. In Recent years, we took part in the reform in the Israeli Innovation (R&D) Law and the formation of the IIA, the drafting of the new IIA licensing rules, and the 2017 tax incentives reform concerning hi-tech R&D companies and the encouragement of import of IP ("preferred technological companies").