Preferred Technological Enterprise
An Israeli tax status under the Law for the Encouragement of Capital Investments granting qualifying R&D-intensive companies a reduced corporate tax rate on technology income and favorable IP treatment.
Preferred Technological Enterprise is an Israeli tax status, under the Law for the Encouragement of Capital Investments, that grants qualifying R&D-intensive companies a reduced corporate tax rate on technology income and favorable treatment of related IP. It is a core lever in keeping high-value tech profits onshore.
Why it matters. The status is a quiet but decisive factor in where Israeli tech companies book profit and hold IP. It shapes effective tax rates that drive headquarters and exit-structuring decisions.
See also: Grant-to-Royalty Obligation (IIA) · Delaware C-Corp Structure · Know-How Transfer / IP Migration