G/SCM/Q2/ISR/26  
 
26 March 2024 
(24-2594) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
  
SUBSIDIES  
REPLIES TO QUESTIONS1 POSED BY THE UNITED KINGDOM REGARDING  
THE NEW AND FULL NOTIFICATION OF ISRAEL2  
The following communication, dated and received on 2 5 March 2024, is being circulated at the 
request of the delegation of Israel . 
 
_______________  
 
 
Question 1  
Tnufa program  
Could Israel please provide further information on any eligibility criteria for entrepreneurs 
and start -up companies to access the Tnufa program, including:  
a) Which sectors are eligible for the scheme?  
b) Can foreign nationals/enterprises resident in Israel benefit from the scheme?  
Reply : 
 
The program has eligibility criteria that must be met cumulatively by all grant recipients throughout 
the program period.  Below please find a general overview of the criteria:  
 
For all applicants:  
• R&D must be conducted in Israel by Israeli residents, unless the committee is convinced 
that it is essential for the program to be conducted outside of Israel or not by an Israeli 
resident.  
• R&D must be carried out by the applicant.  
• The applicant commits to own the know -how resulting from the R&D according to the 
program, including IP rights.  
• There is no double government funding.  
• Applicants do not have limited acco unts, receivership, liquidation, etc.  
Additional criteria for corporations:  
• Incorporated and registered in Israel.  
• Conducts R&D for commercial purposes.  
• The amount of funding raised does not exceed NIS 500,000.  
• The amount of revenue does not exceed NIS 200,000 in the same calendar year.  
• If the corporation is jointly owned by the entrepreneur(s) and an Israeli 
academic/research/medical institution, at least 50% of the corporation is held by the 
entrepreneurs, directly, and there is an IP rights agreement.  
 
a) The program is not restricted to specific fields/sectors.  
 
1 G/SCM/Q2/ISR/25  
2 G/SCM/N/401/ISR  G/SCM/Q2/ISR/26  
 
- 2 - 
 
  b) The program is intended for Israeli corporations and Israeli residents. As detailed above, if 
the committee deemed it essential, it may approve to conduct the program outside of Israel 
or not by a n Israeli resident.  
Question 2  
Space Technology program  
Could Israel please provide further information on any eligibility criteria for enterprises 
to access the Space Technology Program, including whether foreign enterprises operating 
in Israel can also benefit from the scheme?  
Reply : 
The program ceased activity in 2021  
 
The program has eligibility criteria that must be met cumulatively by all grant recipients throughout 
the program period.  Below please find a general overview of the criteria:  
 
• The a pplicant is an Israeli corporation.  
• R&D must be conducted in Israel by Israeli residents, unless the committee is convinced 
that it is essential for the program to be conducted outside of Israel or not by an Israeli 
resident.  
• R&D must be carried out by the applicant.  
• The applicant commits to own the know -how resulting from the R&D according to the 
program, including IP rights.  
• There is no double government funding.  
• Applicants do not have limited accounts, receivership, liquidation, etc.  
• R&D must be of space technologies.  
Foreign enterprises operating in Israel may have the following benefits:  
a. A foreign enterprise  may establish an Israeli entity for developing the product, provided 
that the IP will be owned by the Israeli company.  
b. A foreign enterprise  may be a beta site and as such may be even be a first customer.  
c. A foreign enterprise  may cooperate with an Israeli grantee  as a strategic partner or 
investor.  
d. An EU corporation may be a party to a joint R&D project with an Israeli corporation.  
e. A foreign enterprise  may be a subcontractor of the Israeli grantee.  
 
Question 3  
Support grants for pilot programmes  
Could Israel please provide further information on any eligibility criteria for enterprises 
to access the scheme, including whether foreign enterprises operating in Israel can also 
benefit from the scheme?  
 
Reply : 
 
The program has eligibility criteria that must be met cumulatively by all grant recipients throughout 
the program period.  Below please find a general overview of the criteria:  
 
• The applicant is an Israeli corporation.  
• R&D must be conducted in Israel by Israeli residents, unless the committee is convinced 
that it is essential for the program to be conducted outside of Israel or not by an Israeli 
resident.  
• R&D must be carried out b y the applicant.  
• The applicant commits to own the know -how resulting from the R&D according to the 
program, including IP rights.  
• There is no double government funding.  
• Applicants do not have limited accounts, receivership, liquidation, etc.  G/SCM/Q2/ISR/26  
 
- 3 - 
 
  a. Specific criter ia which relate to the interest of the applicable governmental entity in 
collaboration with the Innovation Authority. e.g. for a collaboration with the Israeli Space 
Agency, that the R&D is of space technology.  
Foreign enterprises operating in Israel may have the following benefits:  
a. A foreign enterprise  may establish an Israeli entity for developing the product, provided 
that the IP will be owned by the Israeli company.  
b. A foreign enterprise  may be a beta site and as such may be even be a first customer.  
c. A foreign enterprise  may cooperate with the Israeli grantee  as a strategic partner or 
investor.  
d. A foreign enterprise  may be a subcontractor of the Israeli grantee.  
 
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