Jerusalem Post | Google purchase of Wiz would be a confident vote in Israel, bring significant tax revenue – expert

Adv. (CPA) Racheli Guz-Lavi, Managing Partner and senior Partner at the Tax Department, and Ian Rostowsky, Partner and Co-Head of the Hi-Tech and Venture Capital Department at our office, provided insights on the financial implications and broader industry impact of the deal involving Wiz and Google.

Racheli explained that Israeli tax revenue from the deal would be paid by Wiz’s founders and investors who are residents of Israel, saying that this could amount to around 2.5 to 3.5 billion dollars in taxes. “Based on the assumption that the value [of the deal] is 23 billion dollars and assuming that 50% of the direct and indirect shareholders are Israeli residents, the tax that is expected to be paid in Israel is between 2.5 and 3.5 billion dollars.”

Ian agreed that the deal could be a big vote of confidence in Israel’s hi-tech sector, but added that the possible transaction highlights what could be seen as “over-reliance of the industry on the cyber/security technology sector for significant exits in 2023 and 2024 to date.”

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