Galmed granted 'Preferred Technological Enterprise' status
Galmed Pharmaceuticals announced that the Israeli Tax Authority has issued a tax ruling granting Galmed Research and Development Ltd. "Preferred Technological Enterprise" status, subject to the conditions and terms of the tax ruling. The grant of the status means that Galmed R&D will be subject to a reduced Israeli corporate tax rate that will range between 6%-12% on any future taxable "technological income" which includes sales, licenses and royalties from its IP protected products. Dividends distributed to non-Israeli resident corporate shareholders that hold at least 90% of Galmed R&D shares, would be generally subject to a withholding tax at a rate of up to 4%, and at a rate of up to 20% if otherwise. The tax ruling applies for five years until 2022 and may be extended for further periods subject to meeting certain requirements.