Taxation of Merger and Restructure

Sections 103-105 of the Israeli Income Tax Ordinance (New Version) 5721-1961, provides taxation relief to restructure transactions such as transfer of assets to a company, mergers and split transactions, by way of deferring the tax event to a future date, under certain conditions.
The purpose of these Sections is to encourage and incentivize structural changes that will benefit the entities involved by removing tax obstacles, and thus contribute to the economy in general.