Teva settles tax dispute in Israel with $750 million payment

The logo of Teva Pharmaceutical Industries is displayed at the company headquarters in Tel Aviv

(Reuters) - Teva Pharmaceutical Industries has entered into a deal with the Israel Tax Authority to resolve all pending litigation related to taxes payable for the years from 2008 to 2020, the drugmaker said on Tuesday.

Under the agreement, Teva will pay $750 million in installments between 2024 and 2029.

In future, if Teva pays dividends on, or repurchases, its equity interests, the company will pay an additional 5%-7% of the amount of such dividends or repurchases in corporate taxes, up to a maximum amount of about $500 million.

Teva said the deal has no impact on its 2024 financial outlook.

(Reporting by Christy Santhosh; Editing by Tasim Zahid and Shailesh Kuber)