JERUSALEM, Oct. 20 (Xinhua) -- Israel has announced a plan to promote Israeli hi-tech through a basket of incentives, according to a joint statement issued by Prime Minister's Office, Ministry of Finance and Ministry of Innovation, Science and Technology on Wednesday.
The plan aims to strengthen and promote Israeli hi-tech as a key growth engine for the Israeli economy, the statement said.
It includes tax benefits for investors in hi-tech companies in the first funding rounds of seed and pre seed, which are considered to have the highest risk.
Tax benefits will also be given to companies that acquire other hi-tech ones, to encourage Israeli companies to keep activity and intellectual property in Israel.
The plan also includes tax exemptions for foreign financial institutions for loans they will give to Israeli technology companies, to help the growth of those companies.
Israeli Prime Minister Naftali Bennett noted that the plan was formed to encourage the growth of Israeli hi-tech companies through the removal of barriers and unnecessary regulation.
"These important steps will help preserve the activity of Israeli hi-tech companies in the country so that they will continue to develop the Israeli economy," he said.
"The hi-tech industry is of strategic importance to the strength of the Israeli economy, especially during the coronavirus period," Israeli Finance Minister Avigdor Lieberman added.