The Israel Tax Authority (ITA) recently issued Ruling 4668/20, which confirms that Platform-as-a-Service (PaaS) operations may qualify for the preferred Technology Enterprise (PTE) regime. Subject to certain conditions, the PTE regime provides reduced corporate tax rates on IP-related income, provided that the IP was developed in Israel, including reduced rates of 7.5% and 12.0% depending on where the operation is located. The subject of the ruling is a PaaS company that provides its customers with a cloud computing platform using IP and software that it developed and owns, with the customers purchasing the cloud services and the right to use...