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The Israeli Ministry of Finance, led by its Cyber Security and Emergency Department, together with the Israel National Cyber Directorate and the Ministry of Foreign Affairs, hosted the annual meeting of the Multinational Financial Cyber Forum on the sidelines of the Expo in Osaka, Japan. This year’s gathering focused on deepening international cooperation to enhance the resilience of the global financial system.

The forum addressed a wide range of issues with proposals for collaboration discussed on key topics, including mitigating AI-related risks, the future impact of quantum computing, supply chain protection, international cooperation in times of crisis, and proactive intelligence sharing.

Senior officials from finance ministries, representatives of the Israel National Cyber Directorate, and cyber agencies from more than 15 countries and international organizations took part. The forum was attended by Israel’s Minister of Economy Nir Barkat, former Mossad Director Yossi Cohen, and Israel’s Ambassador to Japan Gilad Cohen.

Finance Minister Bezalel Smotrich: “Israel stands as a global beacon in the field of cybersecurity, particularly in financial cyber defense. International collaborations led by Israel, especially in these challenging times, are clear proof of Israel’s strong global standing as a cyber power. This is a source of immense pride for Israel’s high-tech industry, the Ministry of Finance, and the State of Israel.”

Yossi Karadi, Head of the Israel National Cyber Directorate, added: “The financial system is one of the main targets for cyber attackers worldwide, and all countries face similar threats. Financial resilience is essential to national resilience. That is why international cooperation, knowledge-sharing, and real-time threat alerts are critical. Israel brings to the table knowledge, innovation, and operational experience built over years. The forum was established on the understanding that no country can face cross-border threats alone.”

Yoni Mor, Head of the Cyber Security and Emergency Department at the Ministry of Finance: “The Multinational Financial Cyber Forum is one of the most important platforms in the world in this field. The meeting plays a vital role in strengthening professional collaborations, enhancing the resilience of financial sectors, and improving cross-border cooperation in financial cybersecurity.”

the government today, approved approximately NIS 3.2 billion in significant and extensive benefits for rebuilding, developing and strengthening the civilian and economic resilience of, the south of the country as part of the national effort to deal with the consequences of the murderous Hamas terrorist attack against the State of Israel on 7 October 2023.

The Government approved two strategic decisions that were formulated, pursuant to a directive from Prime Minister Benjamin Netanyahu, by the Prime Minister’s Office (PMO) in cooperation with Finance Minister Bezalel Smotrich, the Finance Ministry and the other Government ministries.

1. Strengthening and developing the city of Ashkelon:

The approximately NIS 1.4 billion Government decision includes comprehensive budgetary investment in a range of areas: Strengthening the education system, strengthening the resilience of residents and the municipality, developing infrastructure, advancing cultural and sports projects, building public institutions, strengthening the local economy and improving residents’ personal security.

2. A comprehensive Government plan to develop the Western Negev:

The plan involves six main authorities: Ofakim, Netivot and the Merhavim, Eshkol, Sha’ar Hanegev and Sdot Negev regional councils, and includes an approximately NIS 1.8 billion budget for 2025-2029, that will be invested in the following areas:

Strengthening the education system and excellence, developing infrastructure and building public institutions, advancing regional growth engines, an agritech facility in Netivot, developing industrial zones and building a biogas (renewable energy) facility in the Merhavim Regional Council area, innovation and breakthrough reconstruction in the Negev by building a Paralympic village and establishing an innovation and research center in the fields of health and rehabilitation.

Prime Minister Netanyahu:

“Today, the Government is approving extensive steps for the rebuilding, development and renewal of many communities in the Negev, and Ashkelon. We have a deep commitment to the residents of the south, who have shown extraordinary stamina and patience throughout all the months of the war.

Together, we will rebuild our communities and work for their unprecedented prosperity and development.

Together with this, we are committed to ensuring that Gaza will not constitute a threat to the State of Israel and the residents of the south. I would like to thank the Finance Minister, the PMO Acting Director General, and her team for advancing these important decisions.”

Finance Minister Smotrich:

“The Government decision to strengthen ashkelon and the Western Negev is an unequivocal expression of confidence in the residents of Ashkelon, Netivot, Ofakim and the Merhavim, Eshkol, Sdot Negev and Sha’ar Hanegev regional council areas, and the local leadership that has held the line with strength, responsibility and Zionism. We will not suffice with rebuilding – we are building a stronger and safer and more hopeful future for the residents. This is an investment not only of money, but of spirit, faith and vision. The south is the beating heart of the state – and we are returning to it the strength it deserves.”

PMO Acting Director General Drorit Steinmetz:

“The decisions being brought today express the deep, continuing and data-based commitment to rebuilding the south and building a better future for its residents. The planning was done with extensive cooperation in the field, a systemic vision and aspiration for efforts that would lead to lasting change. We will continue to act with responsibility, sensitivity and determination on behalf of strengthening the civilian fabric and community resilience in the Western Negev and Ashkelon.”

The Government today (Monday, 4 August 2025), approved approximately NIS 3.2 billion in significant and extensive benefits for rebuilding, developing and strengthening the civilian and economic resilience of the south of the country as part of the national effort to deal with the consequences of the murderous Hamas terrorist attack against the State of Israel on 7 October 2023.

The Government approved two strategic decisions that were formulated, pursuant to a directive from Prime Minister Benjamin Netanyahu, by the Prime Minister’s Office (PMO) in cooperation with Finance Minister Bezalel Smotrich, the Finance Ministry and the other Government ministries.

1. Strengthening and developing the city of Ashkelon:

The approximately NIS 1.4 billion Government decision includes comprehensive budgetary investment in a range of areas: Strengthening the education system, strengthening the resilience of residents and the municipality, developing infrastructure, advancing cultural and sports projects, building public institutions, strengthening the local economy and improving residents’ personal security.

2. A comprehensive Government plan to develop the Western Negev:

The plan involves six main authorities: Ofakim, Netivot and the Merhavim, Eshkol, Sha’ar Hanegev and Sdot Negev regional councils, and includes an approximately NIS 1.8 billion budget for 2025-2029, that will be invested in the following areas:

Strengthening the education system and excellence, developing infrastructure and building public institutions, advancing regional growth engines, an agritech facility in Netivot, developing industrial zones and building a biogas (renewable energy) facility in the Merhavim Regional Council area, innovation and breakthrough reconstruction in the Negev by building a Paralympic village and establishing an innovation and research center in the fields of health and rehabilitation.

[All remarks are translated from Hebrew]

Prime Minister Netanyahu:

“Today, the Government is approving extensive steps for the rebuilding, development and renewal of many communities in the Negev, and Ashkelon. We have a deep commitment to the residents of the south, who have shown extraordinary stamina and patience throughout all the months of the war.

Together, we will rebuild our communities and work for their unprecedented prosperity and development.

Together with this, we are committed to ensuring that Gaza will not constitute a threat to the State of Israel and the residents of the south. I would like to thank the Finance Minister, the PMO Acting Director General, and her team for advancing these important decisions.”

Finance Minister Smotrich:

“The Government decision to strengthen Ashkelon and the Western Negev is an unequivocal expression of confidence in the residents of Ashkelon, Netivot, Ofakim and the Merhavim, Eshkol, Sdot Negev and Sha’ar Hanegev regional council areas, and the local leadership that has held the line with strength, responsibility and Zionism. We will not suffice with rebuilding – we are building a stronger and safer and more hopeful future for the residents. This is an investment not only of money, but of spirit, faith and vision. The south is the beating heart of the state – and we are returning to it the strength it deserves.”

PMO Acting Director General Drorit Steinmetz:

“The decisions being brought today express the deep, continuing and data-based commitment to rebuilding the south and building a better future for its residents. The planning was done with extensive cooperation in the field, a systemic vision and aspiration for efforts that would lead to lasting change. We will continue to act with responsibility, sensitivity and determination on behalf of strengthening the civilian fabric and community resilience in the Western Negev and Ashkelon.”

The Minister of Finance, Bezalel Smotrich presented today a new reform in the taxation policy designed to facilitate activities and increase the attractiveness of the Israeli high-tech industry. The reform includes a series of legislative steps and changes in the Tax Authority‘s Operational procedures, which will remove barriers and provide incentives for the growth of Israeli high- regulate the acquisition of Israeli high-tech companies, the rapid return of hi-tech professionals to Israel from relocation and investment in companies throughout the life cycle of the industry: From early-stage incorporation and initial funding rounds, through expansion and advanced capital-raising stages, up to IPO or acquisition by multinational companies.

Among other things, the reform includes measures to ease the activity of investment funds in high-tech (Israeli and foreign) and investors (foreign and Israeli); legislation to increase transparency and certainty in the income tax and VAT worlds; removal of investment barriers to investment entities and companies in direct investment in high-tech companies; regulatory easing in the field of structural change to increase the activity of mergers and acquisitions especially in the Israeli high-tech industry; measures to increase taxation certainty for multinational companies, with an emphasis on the stages of acquisition of Israeli companies and management of R&D centers in Israel; a move to increase the certainty in taxation of marketing intangibles ; and steps to increase the tax viability for rapid return to Israel from relocation.

Minister of Finance, Bezalel Smotrich: “Israel is already one of the most attractive countries in the world for high-tech investment, due to its tax rates and high-quality human capital. From now on, it will also be a country known for the simplicity of its tax processes and its regulatory certainty.”

Director of the Israel Tax Authority, Shay Aharonovich: “The Tax Authority recognizes the high-tech industry as the growth engine of the Israeli economy and understands its need for a stable, transparent tax environment that supports expansion of existing investments, attraction of new ones, and the continued growth of Israeli companies.”

Israel Innovation Authority CEO, Dror Bin: “Israel is renowned for its innovation capabilities, however in order to maintain its status as a global high-tech power, it must be not only creative and technologically advanced, but rather also a place where it is easy, predictable, and worthwhile to do business. The reform we are introducing today stems from deep familiarity with the needs of the ecosystem and creates a meaningful change in the business environment by ensuring tax certainty, simplifying procedures, and providing incentives. This is a deep structural change that continues to establish Israel as a strategic target for multinational companies, investment funds and entrepreneurs.”

The primary goal of the reform is to increase tax certainty and streamline bureaucratic processes at critical junctures, in order to encourage the continued growth of Israel’s high-tech industry. The reform was formulated by a team that included representatives from various government bodies (the Israel Tax Authority, the Ministry of Finance, and the Israel Innovation Authority) in collaboration with industry representatives. The team’s work began with working groups that engaged in identification of the main challenges the industry faces, followed by discussion sessions in which the proposed measures for coping with such were developed and agreed upon.

The key issues that were discussed: 

• Enhancing tax certainty concerning the tax policy in respect of management fees and carried interest in investment venture funds activity, in general and specifically concerning both foreign and Israeli investors in venture funds
• Establishing VAT guidelines on carried interest and management fees.
• Tax incentives for direct investments by institutional investors and companies, other than by venture funds as intermediaries.
• Necessary tax relief in the field of corporate restructuring, to facilitate the growth of Israeli companies (through mergers and acquisitions of Israeli companies).
• Increasing tax certainty for multinational corporations acquiring Israeli companies and managing R&D centers in Israel.
• Increasing tax certainty among employees returning to Israel from relocation and reducing disincentives , in order to encourage a quick return to Israel – with an emphasis on tax liability for equity-based compensation (employee stock options).

The solutions the reform proposes:
Venture capital funds activity:

• Uniform income tax rate on carried interest of investment funds: both Israeli and foreign
• Exemption from VAT on carried interest in Israeli funds for both foreign and Israeli investors.
• Exemption from capital gains tax for foreign investing bodies and corporations on their direct high-tech investments, without limitation on investment volume and regardless of whether or not they operate in Israel.
• A fixed formula for calculation of VAT on management fees, based on the ratio between foreign and Israeli investors in venture funds.
• Classification of Israeli investors’ investment in venture capital funds as passive investments.

Merger and acquisition of Israeli companies:

• A series of reliefs in the process of acquiring companies and merging companies – which have already been approved and entered into force.

Acquisition of an Israeli company by a multinational company: 

• Establishing guiding principles for determining the value of intellectual property.
• Establishing guiding principles for determining the pricing method of R&D centers, and focusing on the treatment by senior staff officials.
• Establishing a track for obtaining preliminary approval by the tax authorities to determine the pricing method model that will provide certainty to the R&D centers regarding the tax liability expected in Israel.
• Adopting the OECD’s Pillar 2 rules and establishing an incentive mechanism aligned with international standards.
• Adopting the unified global minimum tax model (QDMTT).

Return of employees from relocation:

• Setting guiding rules regarding the manner of allocation  of income from equity-based  compensation between Israel and abroad
• Granting an exemption from tax on income generated and accrued outside Israel.
• Establishing a credit mechanism for foreign taxes paid on income that is also taxable in Israel.
• Creating a green track for the transition from taxation of capital compensation pursuant to section 3I of taxation under section 102 of the Ordinance.
• At the same time, legislation is promoted to increase the certainty in determining residency for tax purposes – based on the number of days spent in Israel only.

Due to the continued war with Iran, and in order to improve the process of assisting residents whose homes were damaged and deemed uninhabitable, the Director General of the Ministry of Finance, Ilan Rom, the Chairman of the Federation of Local Authorities, Haim Bibas, and the Director of the Tax Authority, Shay Aharonovich, decided to expand the existing procedure. This procedure allows local authorities to place residents whose homes were damaged by acts of war in hotels and receive reimbursement from the Israel Tax Authority’s Compensation Fund for the evacuation expenses. The maximum period of hotel accommodation has now been extended from 7 days to 14 days.

According to the procedure, A local authority employee from the engineering department who has been authorized by the head of the authority may determine that a home is uninhabitable based on the criteria detailed in the Property Tax Law (mainly structural damage to the building’s frame, foundations, or supporting walls, and damage to water supply, electricity, or sewage systems that cannot be repaired within 24 hours), and may evacuate the residents to a hotel. The Compensation Fund of the Tax Authority will Compensate the local authority for the evacuation costs.
During the initial evacuation period, if it is not possible to return to the damaged home, the claimant must file a direct damage claim and indicate therein the need for alternative housing. From the end of the evacuation period onward, alternative housing will be funded directly by the Compensation Fund. This may take the form of hotel accommodation, rental reimbursement, or a monthly grant of  4,000 NIS for those staying with relatives.

The updated procedure also states that seven days after the evacuation, the local authority will submit a reimbursement form to the Compensation Fund, which will transfer payment for the initial 7-day evacuation period, along with a 90% advance payment for the remaining 7 days. Additionally, the procedure clarifies that blast damage resulting in the destruction of a large number of windows will also be recognized as rendering a home uninhabitable.

Minister of Finance, Bezalel Smotrich: “The decision to decentralize responsibility for evacuating residents and to grant the local authorities the authority and tools to act was the right and necessary one, and it continues to prove itself during this time as well. The updated procedure we are presenting today is part of a broader approach that emphasizes flexibility, rapid response, and adaptation to needs on the  field. As I told the heads of local authorities, the State of Israel stands behind them and will continue to provide full financial backing for their efforts on behalf of their residents. The Israel Tax Authority and the local authorities are working in full partnership, with dedication and professionalism, and I thank each and every employee on the field. We will continue to accompany the process, update it, and improve it constantly – to ensure a quick, accurate, and appropriate response for the citizens of Israel.”

Director General of the Ministry of Finance, Ilan Rom: “This decision reflects our strong confidence in local authorities and our commitment to providing a rapid and effective response to citizens, tailored to their needs. We are maintaining ongoing communication with local authorities to identify needs and provide assistance wherever possible, especially given the evolving circumstances and their many implications. I thank all those involved in the joint efforts between the Ministry of Finance and local government, and I appreciate the employees who are stepping up and working day and night to assist and provide a sense of certainty for affected citizens.”

Haim Bibas, Chairman of the Local Government Center: “Due to the sustained security situation, we have taken steps to ensure a rapid and effective response for residents whose homes were damaged by missile fire from Iran. The expansion of the procedure, which we led together with the Ministry of Finance and the Israel Tax Authority, to enable residents to evacuate to a hotel for up to 14 days, is a significant step toward ensuring residents’ well-being and our ability to provide them with immediate assistance, relief, and a sense of security during these difficult times. We listened to what was happening on the ground and ensured that every resident whose home was damaged and rendered uninhabitable would be eligible for hotel evacuation. The heads of local authorities are in the field, deeply familiar with the needs of their communities at every moment. In cooperation with government ministries, we will continue to deliver a swift and professional response to every resident in need.”

Tax Authority Director, Shay Aharonovich: “I would like to thank the Director General of the Ministry of Finance and the Chairman of the Local Government Center for their partnership in formulating this important procedure, which enables a faster and more efficient response to the needs of the population affected by the missile strikes from Iran. The Compensation Fund’s employees are working day and night to provide the best possible assistance. However, at the end of the day, nothing can replace the local authorities’ familiarity with their residents and their ability to deliver an immediate and effective response. At this time, the key to addressing the challenges we face lies in deepening and streamlining the collaboration between central and local government.”

The Ministry of Health reports a jackal infected with Rabies in the town of Kadita in the Upper Galilee. One person who was exposed to the jackal has been referred for preventive treatment against rabies. The notification about the infected jackal was received today, January 20, 2026.

We request that anyone who was in contact, or whose animals were in contact in the incident area with the infected animal or a stray animal, between the dates 03.01.2026 and 17.01.2026 inclusive, to urgently contact the Safed Health Bureau, telephone 04-6994257, 04-6994200, or the Health Bureau closest to their place of residence to consider receiving preventive treatment.

After working hours and during the weekend, please go to the emergency room at a hospital.

The Ministry of Health requests:

• Parents of children – inquire with their children if they have been in contact with suspicious animals and urgently contact the Health Bureau.
• Pet owners – contact the local veterinarian to verify their vaccination status.
• Disseminate information about the incident to travelers and vacationers in the area and in nearby towns.

The Ministry of Health reminds again that anyone bitten or scratched by an animal should immediately wash the area with running water and soap, disinfect with antiseptic agents, and go to the Health Bureau to check if preventive treatment against rabies is necessary.

• Guidelines after an injury by an animal suspected of having rabies

The ministry emphasized improving service to local authorities and strengthening cooperation between the ministry’s various units.

The ministry held a Design Thinking workshop, focused on the customer experience of local authorities. In addition, a professional panel was held, moderated by Shira Goldberg, Acting Senior Director of Strategy, with senior managers in the ministry, Anat Hannah Lanksner, Director of the Local Government Administration, Nadav Lachman Lazar, Director of the Economic Development Administration, Dror Soroka, Haifa District Commissioner and Acting Northern District Commissioner, and Yehuda Zemeret, Legal Advisor to the Ministry of Interior. The panel dealt with the topic of turning work plans into reality. Following this, a personal, down-to-earth interview was held with the Director General of the Ministry, Israel Ozana, moderated by Tami Nassa, Commissioner for Judea and Samaria.

The Director General of the Ministry of Interior, Mr. Israel Ozana, emphasized the importance of planning even in a complex reality: “Planning is the key to success. Not all planning is implemented – but without planning, nothing is implemented. As it is said: ‘Where there is no vision, the people perish.’ 

cooperation between units is not an ‘added value’ – it is a condition for success. When units manage to work together and present a unified concept, it indicates serious professional work. We are one organization, with shared responsibility.”

Shira Goldberg, Acting Director of the Senior Strategy Department: “During the conference, ministry employees practiced their ability to provide service and step into the shoes of local authorities. Likewise, from the analysis of successful reforms, it can be learned that agreements between regulators are a decisive factor for success, especially when the reforms are complex and generate opposition. As a conclusion – this year we placed a great emphasis on cooperation at the conference and in the implementation of work plans in 2026.”

Minister of Energy and Infrastructure, Eli Cohen: “The delegation’s departure is an important step towards the development of the Aphrodite-Yishai field, following my meetings with the Cypriot Minister of Energy, Yiannis. Natural gas is a strategic asset of Israel, strengthening our position as a regional energy power, and we will continue to work to find and develop additional fields, which will increase natural gas production for the domestic market and for export, and will strengthen the Israeli economy.”

Continued efforts to advance the agreement for the development of the natural gas field jointly owned by Israel and Cyprus: A professional delegation from the Ministry of Energy and Infrastructure, in cooperation with representatives from the Ministry of Justice, will depart for Cyprus this evening, in order to continue negotiations for the implementation of the fundamental understandings regarding the Aphrodite-Yishai natural gas field, and to codify them in an intergovernmental agreement. 

As part of these understandings, the development of the field will be carried out by the rights holders on the Cypriot side, while the holders of the Yishai concession and the State of Israel will receive compensation for their share in the field, which will be determined by an international expert.

The delegation’s departure constitutes a continuation of the diplomatic and professional contacts between the countries, and follows the meeting between the Minister of Energy and Infrastructure, Eli Cohen, and his Cypriot counterpart, Yiannis, which took place in jerusalem last month. 

The agreement is important for strengthening the ties between the countries with a shared vision for the development of common natural resources. Reaching understandings is expected to strengthen energy cooperation between the countries and Israel‘s position in the regional arena, and may even contribute to the ability to export gas from Cyprus to Egypt. In addition, reaching an agreement is expected to allow progress on additional issues, such as the planned electricity cable between Israel and Cyprus.

Minister of Finance, Bezalel Smotrich, signed today (Monday) an order for a significant expansion of import quotas for hard and premium cheeses to Israel, as part of the fight against the high cost of living and the effort to increase competition in the food market.
Dairy products in Israel are about 50% more expensive than the OECD average, with hard cheese prices reaching twice the average.
In light of these gaps, the minister decided on a dramatic move to increase duty-free import quotas, with the aim of increasing competition and gradually lowering cheese prices for consumers.
According to the order signed by the minister, the duty-free quota will increase from 11,500 tons per year to 19,500 tons, an addition of 8,000 tons, which constitutes a 70% increase in the volume of duty-free imports. The increase in quotas will take effect immediately and will be valid for two years, with the Minister of Finance retaining the authority to extend the order according to market developments.
The order was signed concurrently with a broad reform promoted by the Ministry of Finance in the dairy sector, which aims to bring about price reductions in all dairy products, including soft cheeses and liquid milk, while maintaining significant local production. The reform includes broad protection for dairy farmers, a safety net for local production, and government investments in small and medium-sized dairy farms and dairies, with the aim of strengthening the industry alongside opening the market to competition.
The Israeli market is characterized by high concentration and significant competition barriers, which lead to Israeli families paying high prices for a limited variety of products.
 
Minister of Finance, Bezalel Smotrich: “I have now taken another significant step in the fight against the high cost of living and dramatically expanded the opening of the hard cheese market to imports.
Duty-free yellow cheese costs NIS 32 per kilogram today, compared to the same cheese from monopolies that costs three times as much. Do you know why they sell it at three times the price? Because they can. Do you know why they can? Because until today, they limited the amount of imports and forced all of us to pay dearly. Now that’s over. It can be cheaper here.”