Online trading company Plus500 Ltd (LON:PLUS) announces that its status as a “Preferred Technological Enterprise” (“PTE”), as accredited by the Israeli Tax Authority (ITA) under the tax regime in Israel, has been extended for the financial years 2022, 2023, 2024, 2025 and 2026.

Consequently, Plus500 Ltd.’s Corporation Tax rate for each of these financial years will be reduced from 23% to 12% and the Withholding Tax rate applicable for dividends will be reduced from 25% to 20%.

This follows Plus500 Ltd.’s initial accreditation as a PTE by the ITA and the Israeli Innovation Authority (IIA) in 2020, at which time the Company’s Corporate Tax rate for financial years 2017, 2018 and 2019 was reduced from 24%, 23% and 23% in each respective year to 12% in each of these years.

This updated Corporation Tax rate of 12% was also applicable for the financial years 2020 and 2021. In addition, the Withholding Tax rate applicable for dividends was reduced from 25% to 20%, up to the financial year 2021.

David Zruia, Chief Executive Officer, commented:

“Plus500 was one of the first companies to receive the ‘Preferred Technological Enterprise’ tax accreditation in 2020, delivering significant rebates and cash savings for the company and its shareholders, and helping to support on-going investment in our technology.

“The significant achievement of an extension of this accreditation, due to the substantial commitment and efforts of the Group’s Chief Financial Officer, Elad Even-Chen and the finance team, represents additional significant potential to shareholder value. In addition, the accreditation further validates the high quality and capability of Plus500’s technology, developed over a number of years, which will be further strengthened by our on-going investment in innovation, R&D and product development.”