American multinational technology giant Microsoft is in talks to expand its activity in Israel and to invest $1 billion in its local operations, financial daily Globes reported Monday.
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According to the report, Microsoft CEO Satya Nadella spoke with Prime Minister Benjamin Netanyahu prior to the March 23 elections and detailed his company's plans for new investments in Israel. The company could invest up to $1.5 billion in Israel.
Microsoft is currently committed to setting up a data center in Israel in 2021. Other projects are said to include the expansion of its local chip-production activity, as well as setting up a research and development center.
Globes reported that Nadella told Netanyahu that Israel is, "A very important development center for Microsoft."
He made no requests for government incentives during the conversation and Israel made no commitments, the financial daily said.
Senior Microsoft executives and officials at the Prime Minister's Office and the National Economic Council are said to be in talks about the details of the investment, the commitments that the tech giant would undertake, and the benefits that it will receive from the state.
Globes noted that Microsoft already enjoys a low tax rate of 6% on profits on its operations in Israel, where standard corporate tax is 23%. Other, smaller tech companies pay between 7.5% and 12%.
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