This is the state's profit from the huge Israeli high-tech exit after the chip company was acquired by Intel global for $ 2 billion

• Intel offices // Photo: Noam Rivkin Fenton

NIS 1.7 billion - this is the amount the state expects to receive from the huge Israeli high-tech exit. This is the acquisition of Intel $ 2 billion by the global chip company Habana Labs.

This is the seventh-largest exit in Israeli high-tech history, more than the $ 1.1 billion Wise navigation app for Google.

Founded in 2016, Habana Labs develops artificial intelligence chips known as "deep learning accelerators" and programmable for data centers.

The company raised three rounds of capital before it was acquired by Intel worldwide, and it is estimated that 60% of Habana Labs' equity is held by Israeli residents.

Consequently, the transaction will be subject to Israeli tax on capital gain, according to the following distribution: 30% tax payable to those holding more than 10% of the company's shares and payment of 25% to those holding a single-digit share of the company's share capital.

Chairman of Habana Labs - Avigdor Vilentz // Photo: Eyal Toag

Attorney Tali Yaron-Elder, former income tax commissioner and currently a partner in the Yaron-Elder Fleur Schwartz & Co. office, explains that unlike most of the previous exits, where shareholders were foreign, this time the state would benefit from it being particularly high. Of an Israeli company, foreign shareholders who have invested in the company will usually be exempt from capital gains tax in Israel, "Elder tells Israel Today.

"In contrast, Israeli shareholders will be charged with capital gains tax ranging from 25% to 30%." She says, "Assuming that 50% of Havana Labs shareholders are Israeli, and if we deduct their investment cost, then in a schematic way - the tax would be about half a billion dollars," states Yaron-Elder.