Israeli Tax Alerts | Practical Interpretations | 2008-2020

112 In the past, we have expressed our opinion that in the case of the retention of the IP in an acquired company and the granting of a usage right in respect of it "the company will avoid the existence of possible claims regarding the absolute sale of its assets (in which a significant tax exposure is inherent), and the potential dispute is narrowed to a discussion on the royalties rate or on the manner is determined". (September 2020)