Teva Pharmaceutical Industries has reached an agreement with the Israel Tax Authority (ITA) to settle all outstanding tax disputes related to the company’s taxable years from 2008 to 2020.
Under the terms of the agreement, the Israeli multinational pharmaceutical company will pay a total of $750m in instalments from the current year until 2029.
Teva said that the resolution allows it to close the longstanding income tax matter and refocus on its dedication to patient health and the ongoing execution of its “Pivot to Growth” strategy.
Additionally, the pharmaceutical firm has agreed to pay an extra 5% to 7% of the corporate taxes in case of any future dividends or equity repurchases.
The tax is restricted to a maximum payment amount of around $500m.
Teva has confirmed that the settlement announcement does not affect its financial outlook for 2024.
With operations in 58 countries, the company has a workforce of 37,000 employees worldwide.
The pharma firm said that it is committed to the State of Israel and the Israeli ecosystem.
Earlier this week, Teva Pharmaceuticals, a US affiliate of the company, launched the authorised generic of Victoza (liraglutide injection 1.8mg), in the US.
Liraglutide is an injectable prescription medicine indicated to improve glycaemic control in adults and paediatric patients aged 10 years and older with type 2 diabetes mellitus.
It is also indicated to lower the risk of cardiovascular events in adults with type 2 diabetes mellitus and known heart disease.
