Google’s recent acquisition of the Israeli-founded cybersecurity firm Wiz is anticipated to yield substantial tax revenue for Israel.

The deal involves the sale of shares and affects various shareholder groups, including founders, employees, and investors.

Wiz’s founders—Assaf Rappaport, Roy Reznik, Ami Luttwak, and Yinon Costica—are Israeli residents subject to capital gains tax.

Each founder, owning approximately 9.3% of the company, is expected to receive around US$3 billion. This results in an estimated tax liability of US$900 million each.

Israeli employees, who collectively own about 10% of Wiz, valued at roughly US$3.2 billion, are also subject to capital gains tax.

Recent Wiz developments