In the huge acquisition of Google, both the Four Wizfs Rappapt, Ami Luttwak, Yinon Costica and Roy Reznik, who are believed to be 9 % of the company, will get $ 2.9 billion before taxes, assuming that the deal overcomes all the organizational impact.
Next, the money of the $ 21 million in Wiz in February 2020: Gili Raanan's Cyberstarts and Sequoia Capital, one of the largest investment capital companies in the world and one of the first investors in Google and Cisco. Estimates indicate that these two VCS have retained 10 % of WIZ at the date of launch. They sold some stocks along the way, but they still keep a somewhat high share by 8-9 %, after they invested in pursuing hundreds of millions of dollars each.
The 1,800 Wiz employees (one third of them in Israel) carry options that represent 10 % of the company completely. In addition, the sources told “Globes”, according to the sale agreement, the employees will obtain a reward for retaining a total of about one billion dollars.
The state will also feel total, although the account is somewhat complicated. The current Israeli shareholders are the founders, 250 workers, Cyberstarts and Cerca VC, which includes about 45 % of the company and will be the main source of tax revenue.
Foreign investors, especially international investment capital companies, are exempt from taxes in Israel. Only Israeli representatives will be responsible for imposing taxes on their success fees.
The challenge facing the tax authority in Israel lies in the fact that most WIZ's intellectual ownership belongs to Wiz Inc. The American, which is the Israel Development Center, is a subsidiary. The authority can start a special evaluation on the basis that a large part of intellectual property has been developed in Israel, but this is a complex procedure that can lead to the loss of revenue for the state. When Waze was obtained a decade ago, the transfer of intellectual property to the United States resulted in a tax of 800 million NA, while the state itself did not reach 500 million New. The current deal, which is 25 times the size, represents similar challenges, but much wider.
Tax experts who have been consulted by “Globes” estimated the total state revenue from the deal at 12 billion NIS on a conservative basis, and up to 18 billion New Ni. This is equivalent to 2 % annual revenue at VAT. When negotiations were ongoing on the former Google offer for Wiz last year, the economic advisor to Prime Minister Professor Avi Simhon suggested that the increase of 1 % at the value -added tax rate from 17 % to 18 % already planned at the beginning of this year (is now implemented) if the deal is presented. Now that there was a deal, it remains to wonder if this proposal will be raised again.
It was published by Globes, Israel Business News – En.globes.co.il – on March 19, 2025.
© Copy Publish Publisher Itonut (1983) Ltd. , 2025.