NVIDIA and Google in Talks with Israel to Pay Corporate Taxes in US Dollars
The Israeli Ministry of Finance and the Tax Authority are engaged in talks with NVIDIA and Google regarding the possibility of settling corporate tax liabilities in US dollars. This fiscal initiative aims to reform the existing taxation framework for global businesses in the country, potentially paving the way for other multinational corporations to join in the future.
For years, the tax system operated paradoxically: transnational companies generated their primary revenue in dollars but were forced to buy massive amounts of shekels to pay local taxes. Over the past year, the national currency has surged by approximately 20%, severely hitting business profitability. Meanwhile, the corporations themselves artificially fueled this growth by regularly converting their massive earnings. Now, negotiators are working to eliminate this economic imbalance.
The proposed solution holds strategic value for both sides, as the state could directly use dollar inflows to service its external debt and reduce conversion costs. The scale of the potential shift is highlighted by NVIDIA, which contributed roughly 1.28 billion dollars in taxes to Israel last year. If successful, these negotiations will establish a new financial standard for how the state interacts with major global investors.
