Tech giants, and Nvidia in particular, are among the biggest employers in Israel, and their impact on the local economy is enormous

The recent rise in the shekel's value versus the US dollar has hit Israel's tech export sector hard. Over the past year the local currency has gained around 20 percent against the dollar, cutting into revenues for domestic firms even as their main costs, chiefly salaries, remain in shekels and keep climbing.

Against this backdrop Nvidia and Google have asked the Israel Tax Authority to allow tax payments in dollars rather than shekels, aiming for greater operational stability. Globes understands that other companies have filed similar requests.

For the government such a change could help limit further dollar weakening by easing demand for the local currency.

Neither the Tax Authority nor the Finance Ministry has yet set a formal policy. The request follows the precedent set in Google's $32 billion acquisition of Wiz, where the seller was permitted to settle its tax bill in dollars without converting to shekels.

The Tax Authority recognizes the issue created by that precedent. Other multinationals could cite it in court, so officials are expected to approve the requests at least for major players.

One of the biggest employers in Israel

Tech giants, and Nvidia in particular, rank among Israel's largest employers with a substantial effect on the economy.

Nvidia's Israeli revenue rose from $325 million in 2023 to $840 million in 2024 and reached $1.47 billion last year. Taxes paid locally totaled $1.287 billion, close to NIS 4 billion.

Even if the principle is accepted, Accountant General Michal Abadi-Boianglu will decide the matter because of its potential effect on national debt.

The Tax Authority cleared dollar payments for the Wiz transaction roughly two months ago, and tech firms are now pressing for similar treatment.