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SolarEdge Technologies Faces Tax Risk Amid Potential Changes in Israeli Investment Law

SolarEdge Technologies Faces Tax Risk Amid Potential Changes in Israeli Investment Law

SolarEdge Technologies Inc. (SEDG) has disclosed a new risk, in the Taxation & Government Incentives category.

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SolarEdge Technologies Inc. faces a significant business risk due to potential changes in Israeli tax benefits under the Law for the Encouragement of Capital Investments. Their Israeli subsidiary currently enjoys tax advantages as a ‘Benefited Enterprise’ and has elected to apply terms as a ‘Preferred Enterprise’ or ‘Preferred Technological Enterprise’. However, failure to meet the stipulated conditions or changes in the law could result in increased tax liabilities, as their income would be subject to the standard corporate tax rate of 23%. Additionally, any expansion of activities outside Israel might not qualify for these benefits, further impacting their financial operations.

The average SEDG stock price target is $14.70, implying -15.86% downside potential.

To learn more about SolarEdge Technologies Inc.’s risk factors, click here.

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