IBM Economic Audit

Audit Phase: V-ECON
Target Entity: IBM Corporation (NYSE: IBM)
Audit Date: 2026-05-01
Research Basis: Training data through April 2026; live web search unavailable. All findings derived from corporate filings, SEC disclosures, IBM corporate publications, and NGO databases as cited. Evidence predating January 2020 is flagged [pre-2020].

Supply Chain & Sourcing Relationships

IBM is a technology, software, and professional services corporation. Its procurement activities encompass technology components, software licensing, cloud infrastructure, and professional services — not agricultural, food, or consumer goods.

Direct Supplier Relationships (Agricultural & Food)
No public evidence has been identified of any commercial relationship between IBM and Israeli agricultural exporters, aggregators, or produce distributors — including entities such as Mehadrin, Hadiklaim, Galilee Export, or Agrexco successors. Product categories such as Medjool dates, avocados, citrus, fresh herbs, or potatoes are not relevant to IBM’s procurement activities.⁸¹⁴ No public evidence identified.

Importer of Record Structure
IBM does not import agricultural or food goods and has no importer-of-record entity for Israeli produce in any corporate filing, subsidiary registry, or NGO report reviewed.¹²³⁴ No public evidence identified.

Technology & Services Supply Chain
IBM’s publicly available Supplier Code of Conduct and procurement policy govern its technology supply chain, addressing labor standards, environmental compliance, and ethical sourcing as applied to technology components and services.⁸¹⁴ IBM’s technology supply chain, including semiconductor components, software, and hardware manufacturing, is global in scope. No Israel-specific supplier concentration has been identified in IBM’s public procurement disclosures.⁸¹⁴

NGO & Third-Party Supply Chain Reviews
The Who Profits Research Center maintains an IBM profile⁷¹⁹ that references IBM’s commercial relationships with Israeli government and defense-adjacent entities. Corporate Occupation has similarly listed IBM in connection with Israeli government contracts.³³ AFSC Investigate also maintains an IBM profile documenting IBM’s supply of information technology infrastructure and services to Israeli government agencies.²⁰ Neither Who Profits, Corporate Occupation, nor AFSC Investigate identifies IBM in the context of agricultural supply chains or produce sourcing. These databases address IBM’s government contracting and technology services activity, which is addressed in Section 4 (Operational Presence & Market Activity) below.

Don’t Buy Into Occupation (DBIO)
IBM is not named in the DBIO 2024 or 2025 company lists.²¹²² The DBIO methodology targets companies with direct settlement-business commercial relationships — principally financial services, real estate, tourism, and consumer goods sourcing from settlements — which does not correspond to IBM’s profile as an enterprise IT vendor. IBM’s absence from DBIO lists is consistent with its activity profile.

PAX Report — “Companies Arming Israel and Their Financiers” (June 2024)
IBM is not named as a primary subject in the PAX June 2024 report in the context of direct weapons or weapons-systems supply to Israel.²³ IBM is not a defense prime contractor or weapons manufacturer in the conventional sense. IBM’s principal institutional shareholders — Vanguard, BlackRock, and State Street — appear in the PAX financier matrix as holders of equity positions in companies that supply military technology to Israel, a consequence of their role as passive index fund managers holding broad market portfolios rather than any directed investment decision by IBM or its management.¹⁶²³

Seasonal Sourcing Patterns
Not applicable to IBM’s business model. No public evidence identified.

Product Origin, Labeling & Regulatory Compliance

Settlement-Origin Products
IBM does not procure or retail physical food or consumer goods. No NGO investigation — including Who Profits⁷¹⁹, DEFRA advisory reviews, or customs audit findings — has cited IBM in the context of settlement-origin product labeling. No public evidence identified.

UN OHCHR Business Database (HRC res. 31/36 / 53/25)
IBM is not listed in the UN OHCHR database of business enterprises involved in settlement activity.¹⁷ The database primarily targets companies with direct business operations in Israeli settlements in the West Bank and East Jerusalem — principally construction, real estate, tourism, agriculture, and financial services. IBM’s profile as an enterprise IT and services vendor does not correspond to the primary activity categories captured in the database’s current iterations. Status: IBM not identified in UN OHCHR database as of training data through April 2026.

UN A/HRC/59/23 — Albanese Report (2 July 2025)
UN Special Rapporteur Francesca Albanese’s report A/HRC/59/23, titled “From economy of occupation to economy of genocide,” addresses the economic infrastructure sustaining the occupation and in paras 48–86 examines specific sectors: settlement construction and real estate, natural resources, agribusiness, global retail, occupation tourism, finance, charities, and academia.¹⁸ Based on training data, IBM is not specifically named in A/HRC/59/23 as a subject entity in the sectors covered by those paragraphs. However, the report’s broader framing in earlier paragraphs (paras 1–47) addresses the role of international business generally in sustaining what the Special Rapporteur characterizes as the “economy of genocide,” invoking UN Guiding Principles on Business and Human Rights. IBM’s government technology contracts in Israel would be addressable under this broader framing, though IBM is not individually named in the report based on training data. Note: A/HRC/59/23 is dated 2 July 2025; the absence of an individual IBM citation is based on training data recall rather than a confirmed primary-source read of the full text — direct consultation of the OHCHR document is recommended to resolve this gap.¹⁸ Status: IBM not individually named in A/HRC/59/23 based on available training data; broader thematic framing applicable.

Norwegian GPFG and KLP Exclusion Lists
IBM is not on the Norwegian Government Pension Fund Global (GPFG) exclusion list as of training data through April 2026.³⁶ GPFG’s exclusions in the technology sector have focused on companies with direct involvement in nuclear weapons, cluster munitions, or settlement construction and infrastructure. IBM similarly does not appear on KLP’s exclusion list as of training data through April 2026.³⁷ KLP’s occupation-related exclusions focus on settlement construction, real estate, and financial sector entities. Status: IBM not excluded by GPFG or KLP as of training data through April 2026.

Labeling Compliance
IBM’s product portfolio consists of software, cloud services, IT infrastructure, and consulting services. Country-of-origin labeling obligations as applied to food and consumer goods are not applicable to IBM’s commercial operations. No public evidence identified.

Corporate Labeling Policy
IBM’s publicly available Supplier Code of Conduct⁸ and procurement policy¹⁴ address labor standards, environmental compliance, and ethical sourcing in the context of technology components and services. No labeling policy specific to occupied or contested territories has been identified in IBM’s public governance documents.¹²³ IBM’s corporate responsibility reporting¹⁰ does not address product origin labeling in an Israel or occupied territories context. No public evidence identified.

Investment, Capital & Financial Exposure

Foreign Direct Investment in Israel
IBM has maintained a continuous operational and investment presence in Israel for decades, constituting one of its most established international country-level operations.

• IBM Israel Ltd. is the principal wholly-owned subsidiary through which IBM conducts sales, services, and technology operations in Israel.¹¹ As a registered Israeli corporate entity, IBM Israel Ltd. represents a direct foreign direct investment commitment, though neither its book value nor its capitalization is separately disclosed in IBM’s public filings.¹²³

• IBM Research — Haifa is one of IBM’s twelve global research laboratories and was established in 1972 [pre-2020], making it one of IBM’s longest-operating international research facilities.⁵¹⁵ The lab is located on the Haifa University campus and focuses on artificial intelligence, cybersecurity, cloud computing, storage systems, and mathematical sciences.⁵¹⁵¹² IBM Research — Haifa marked its 50th anniversary in 2022, confirmed by IBM’s own research blog.³² This constitutes a multi-decade direct capital and operational investment in Israel — 52+ years of continuous operation as of 2024. Research output from the lab encompasses AI and machine learning (including large language model infrastructure), cybersecurity, quantum computing (in coordination with IBM Quantum program globally), storage and cloud systems, and mathematical and algorithmic sciences. The lab maintains relationships with Technion — Israel Institute of Technology and Hebrew University through joint research programs, consistent with standard multinational research lab practices.⁵³² As of training data through early 2026, the lab remains active and publishing.¹² Status: confirmed ongoing, including post-19 July 2024 and post-November 2024.

• IBM acquired Trusteer, an Israeli-founded cybersecurity firm, in August 2013 [pre-2020] for a reported consideration in the range of $800 million–$1 billion (IBM did not officially confirm the precise figure at closing).⁶ Trusteer’s technology was subsequently integrated into IBM Security’s product suite. The acquisition brought Israel-based engineering and research capabilities into IBM’s global security division. The current size of Israel-based Trusteer-legacy operations post-integration is not publicly disclosed in IBM’s filings.¹⁴ Status: integrated; ongoing Israel-based headcount unconfirmed.

• No public evidence of IBM-owned manufacturing facilities, agricultural operations, logistics hubs, or retail real estate in Israel or in occupied territories has been identified. IBM’s Israel footprint is office, laboratory, and services-based.⁵¹¹

R&D and Innovation Centres
– IBM Research — Haifa: As detailed above, this lab has operated since 1972 [pre-2020] and remains one of IBM’s core global research nodes.⁵¹⁵³²
– IBM has participated in programs affiliated with the Israel Innovation Authority (IIA) — the Israeli government body that co-funds multinational R&D investments under Israeli industrial R&D law.⁹³¹ The precise scope and financial value of IBM’s IIA participation are not enumerated in IBM’s public filings or in IIA’s publicly accessible project database at the level of individual company grants. Status: partially confirmed; grant detail is an identified evidence gap.
– No public evidence of IBM operating a dedicated accelerator, venture program, or separate innovation hub in Tel Aviv’s “Silicon Wadi” ecosystem beyond IBM Israel’s standard commercial engagement.¹¹

Parent and Beneficial Ownership Flows
– IBM Corporation is incorporated in New York State, USA, and is publicly traded on the NYSE under the ticker IBM.¹³ IBM has no Israeli parent company or Israeli beneficial owner. IBM is not a subsidiary of any Israeli-domiciled entity.⁴
– Principal institutional shareholders — Vanguard Group (~8–9% of IBM shares), BlackRock (~6–7%), and State Street (~4–5%) — are US-domiciled passive index asset managers, as reflected in SEC 13-F filings.⁴¹⁶ No single natural person or family office holds ≥10% of IBM shares. IBM’s shareholder base is dominated by institutional index managers with no Israeli beneficial ownership concentration.⁴¹⁶²⁷ No Israeli sovereign wealth fund, state-linked investor, or Israeli government entity has been identified as a significant IBM shareholder in any public filing reviewed.¹²³⁴
– Profit flows run outward from IBM Israel to IBM’s US parent via intercompany consolidation — not inward to Israel from IBM’s global operations. IBM Israel is a wholly-owned operating subsidiary; its revenues and profits consolidate upward into IBM Corporation’s global accounts.¹²³

Controlling Principals — CEO, Chair, and C-Suite
– Arvind Krishna (CEO, IBM, since April 2020): Arvind Krishna is an Indian-American technologist who joined IBM in 1990. Based on SEC proxy filings and Form 4 disclosures,²⁶²⁷²⁸ his disclosed compensation and equity holdings are in IBM Corporation stock and IBM equity awards. No personal investment in Israeli-domiciled companies, Israeli sovereign bonds, or Israel-focused funds is disclosed in IBM’s proxy statements reviewed. No public reporting in training data identifies Arvind Krishna as holding personal Israeli investments or maintaining board-level affiliations with Israeli companies. No public evidence identified.
– IBM Board of Directors (general): IBM’s proxy statements²⁷²⁸ disclose Board composition. No IBM board member has been publicly identified in training data as holding a significant personal investment in Israeli-domiciled companies at a level that would constitute a controlling-principal attribution concern. Individual director personal portfolios are not fully disclosed in proxy filings beyond IBM stock holdings — this is an identified evidence gap.
– Principal institutional shareholders: Vanguard, BlackRock, and State Street hold positions in Israeli-domiciled companies through index fund mandates as a consequence of their broad market mandate, not as directed investment decisions. This does not constitute a controlling-principal concern for IBM specifically.¹⁶²³

Status: No controlling-principal Israeli investment exposure identified from available public disclosures.

Portfolio and Fund Exposure
IBM does not publicly disclose holdings in Israeli sovereign bonds, Israeli-domiciled equities, or Israel-focused investment funds in its annual reports or 10-K filings.¹²³⁴ IBM’s pension and benefit trust investment disclosures do not separately enumerate Israeli securities by country. IBM’s pension assets are disclosed at asset-class level (equities, fixed income, alternatives), not at the level of individual country or security, meaning Israel-specific exposure within pension assets cannot be confirmed or excluded from available data.¹⁴¹⁰ No public evidence identified of targeted Israeli portfolio investment. IBM does not underwrite Israeli sovereign debt, sell Israel Bonds, manage third-party investment assets, provide insurance underwriting, or engage in direct lending or trade finance to OHCHR-listed companies as a primary business activity — the Financing-the-State rubric is not applicable to IBM’s primary business model. These constitute identified evidence gaps where applicable.

Operational Presence & Market Activity

Physical Footprint
– IBM Israel Ltd. maintains commercial offices in Israel. The principal location is in Petah Tikva, in the greater Tel Aviv metropolitan area, which serves as IBM Israel’s commercial headquarters.¹¹ IBM Research — Haifa occupies facilities on the Haifa University campus and has done so since 1972 [pre-2020].⁵¹⁵
– No IBM offices, warehouses, sales operations, or support centres in the West Bank, Gaza, or Golan Heights have been identified in public sources reviewed.⁵¹¹⁷ However, NGO sources — Who Profits⁷¹⁹ and Corporate Occupation³³ — have referenced IBM in connection with Israeli government contracts that may have defense-adjacent or occupation-adjacent dimensions. Primary documentation specifically establishing IBM technology deployment in occupied territories was not fully resolvable from the sources reviewed. This is an identified evidence gap warranting primary-source verification against ¹⁹³³.
– IBM’s Israel presence is entirely office and laboratory based with no manufacturing, agricultural, or logistics infrastructure identified.⁵¹¹

Settlement Nexus
No public evidence has been identified of IBM maintaining physical offices, sales operations, data centers, warehouses, or support facilities in the West Bank (including East Jerusalem) or Golan Heights.⁵¹¹¹⁹ The settlement nexus concern for IBM, as reflected in NGO sources, is indirect — through technology supplied to Israeli government agencies that administer or enforce policies affecting the occupied territories — rather than through direct IBM commercial presence in settlement geography.

Who Profits’ methodology and documentation¹⁹²⁵ address whether IBM technology — deployed via IBM Israel’s government contracts — reaches or enables settlement administration or population control in the occupied territories:

• Who Profits has documented IBM in the context of e-Government and population registry systems supplied to Israeli authorities. The Israeli population registry administered by the Ministry of Interior covers both Israeli citizens and the Palestinian population registry administered under Oslo-era arrangements. The extent to which IBM technology deployed in Israeli government infrastructure touches administration of the occupied territories is documented by Who Profits as an area of concern, but specific system-level attribution is not fully resolvable to primary procurement records from training data.
• IBM technology deployed in Israeli checkpoints and border control systems has been referenced in NGO documentation (Who Profits¹⁹, Corporate Occupation³³) as a potential nexus with occupied territory administration, given that checkpoint technology serves to enforce movement restrictions in the West Bank. Primary contract documentation for these systems was not fully resolvable from training data.

No IBM operations physically located in settlements have been identified. Status: No direct IBM physical presence in occupied territories identified. Settlement nexus for IBM operates, per NGO sources, through government technology contracts rather than direct geographic presence; primary documentation remains an evidence gap.¹⁹²⁵³³

Government and Institutional Contracts
IBM has historically provided technology and services to Israeli government ministries, public health institutions, financial sector entities, and defense-adjacent organizations, consistent with IBM’s global enterprise and government services business model.¹¹ Who Profits’ IBM documentation focuses on biometric population registry and population control infrastructure, Israeli government enterprise IT contracts (including Ministry of Health, Ministry of Finance, and defense-adjacent procurement), and settlement-adjacent technology rendered to Israeli state agencies.¹⁹²⁵ AFSC Investigate similarly documents IBM’s supply of IT infrastructure and services to Israeli government agencies and IBM Research — Haifa’s role within Israel’s broader technology ecosystem, including proximity to Israeli defense and intelligence sector alumni networks.²⁰

Specific contract details are not enumerated in IBM’s public filings, and Israeli government procurement records are not fully accessible in English-language open-source databases. The full scope of current IBM Israel public-sector contracts therefore cannot be confirmed from available open sources. This is an identified evidence gap. IBM has not publicly announced suspension or termination of any Israeli government contract in connection with the Gaza conflict, the ICJ AO (19 July 2024), or the ICC warrants (November 2024).¹¹²⁴³⁸ Specific post-October 2023 contract awards to IBM Israel are not individually documentable from IBM’s public filings or from Israeli procurement records accessible in English-language open-source databases. This remains an identified evidence gap.²⁴³⁸

Constructive Notice — Post-19 July 2024 and Post-November 2024 Continuation
The International Court of Justice issued its Advisory Opinion on 19 July 2024, finding Israel’s occupation of Palestinian territories unlawful and calling on third states and international organizations to take steps to end the situation. The International Criminal Court issued arrest warrants in November 2024 for Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant in connection with alleged war crimes and crimes against humanity in Gaza.

Based on training data through April 2026:

1. IBM Research — Haifa: Continued operations confirmed. No IBM announcement of suspension, review, or wind-down of Haifa lab operations has been identified in training data.⁵¹²³² Status: Confirmed ongoing post-19 July 2024 and post-November 2024.
2. IBM Israel Ltd. commercial operations: No IBM announcement of suspension or review of IBM Israel’s commercial operations in response to the ICJ AO or ICC warrants has been identified in training data.¹¹ Status: Confirmed ongoing.
3. IBM government contracts in Israel: No IBM announcement of suspension or termination of Israeli government contracts in response to the ICJ AO or ICC warrants has been identified in training data. Status: Presumed ongoing; no suspension announced.
4. IBM’s public statements on Israel/Gaza: IBM did not issue public statements specifically addressing its Israel operations, government contracts, or the conflict in a manner that announced material changes to Israel operations. IBM’s corporate responsibility reporting¹⁰ and public statements in this period did not announce material changes to Israel operations. Status: No IBM public policy response identified specific to ICJ AO or ICC warrants. Note: absence from training data recall does not constitute a confirmed absence; direct review of IBM’s newsroom and corporate responsibility disclosures for July 2024–April 2026 would resolve this gap.

Employment
IBM Israel’s precise employee headcount is not publicly disclosed in IBM’s global annual reports, which report staffing only at broad regional aggregates.¹²³ Industry-facing sources (not URL-confirmable to a primary source) have historically estimated IBM Israel’s workforce in the range of 1,000–2,000 employees, but this figure cannot be verified against a primary document and should be treated as unconfirmed. IBM Israel Ltd. is registered under Israeli corporate law and is therefore subject to Israeli corporate taxation, though specific tax payments are not publicly disclosed by IBM at the country level.¹⁴

Market Positioning
IBM’s investor-facing annual reports and presentations do not designate Israel as a separately named strategic growth market or regional center.¹²³ Israel-specific revenue is not reported as a standalone geographic segment; IBM aggregates revenue into “Americas,” “Europe/Middle East/Africa” (EMEA), and “Asia Pacific” buckets. IBM Israel is presented on IBM’s country portal as a full-service IBM market offering the full range of IBM’s software, cloud, consulting, and infrastructure services.¹¹

Corporate Structure & Foundational Ties

Founding and Incorporation History
IBM was not founded in Israel. IBM (International Business Machines Corporation) traces its origin to the Computing-Tabulating-Recording Company (CTR), incorporated in New York in 1911 [pre-2020], and was renamed IBM in 1924 [pre-2020].¹¹³ IBM has no Israeli founding history, no Israeli co-founder, and no Israeli charter origin.

IBM Israel Ltd. was established as a wholly-owned local subsidiary of IBM Corporation. It is not an acquired Israeli-origin brand operating under legacy Israeli governance structures. The 2013 [pre-2020] acquisition of Trusteer⁶ introduced an Israeli-founded company into IBM’s portfolio, but Trusteer was fully integrated into IBM Security and does not function as an independent brand or corporate entity with separate governance.

Headquarters and Legal Domicile
IBM Corporation’s legal domicile and operational global headquarters: Armonk, New York, USA.¹⁴ IBM’s certificate of incorporation is filed under New York State law.⁴ IBM Research — Haifa is a research facility, not a corporate headquarters or governance center.⁵ No dual Israeli corporate headquarters or registered office with governance functions exists.

Group Attribution — Parent, Subsidiary, and Sibling Entities
IBM Corporation has no parent company. IBM is the ultimate holding entity. Relevant subsidiaries and their Israel-relevant status:

• IBM Israel Ltd.: Wholly-owned operating subsidiary. Primary vehicle for Israel operations. Covered throughout this audit.¹¹
• Red Hat, Inc.: Acquired by IBM in July 2019 for approximately $34 billion. Red Hat is a US-domiciled open-source software company (Raleigh, North Carolina). Red Hat has historically maintained a presence in Israel — Red Hat Israel — consistent with its global sales and support model. Red Hat Israel is a standard country sales operation. No Red Hat Israel operations in occupied territories have been identified in training data. Red Hat is not separately listed in Who Profits or DBIO company lists based on training data.³⁴ Status: Red Hat Israel is a standard subsidiary sales presence; no occupation-specific activity identified. Confirmed ongoing as IBM subsidiary.
• Turbonomic: Acquired by IBM in June 2021 for a reported ~$2 billion. US-domiciled (Boston). No Israeli founding history or Israeli operations identified in training data. No public evidence identified of Israel-specific activity.
• Apptio: Acquired by IBM in August 2023 for approximately $4.6 billion. US-domiciled (Bellevue, Washington). No Israeli founding history identified. No public evidence identified of Israeli operations.
• Instana, Randori, SevOne: Other recent acquisitions; all US or European domicile; no Israel-specific activity identified in training data.

Kyndryl (spun off November 2021)
IBM spun off its managed infrastructure services division as Kyndryl Holdings, Inc. in November 2021. Kyndryl operates as an independent publicly traded company (NYSE: KD) and is no longer an IBM subsidiary.³ Kyndryl Israel operates as a managed services provider in Israel. Because Kyndryl is no longer part of IBM, its activities post-November 2021 are not attributable to IBM Corporation. Status: Kyndryl is not an IBM entity post-November 2021; its Israel activities are not IBM-attributable.

No IBM subsidiary other than IBM Israel Ltd. and Red Hat Israel has been identified with Israel-specific operational activity.

Israeli-Nexus Floor Factors
Reviewing the four I-ECON factors:

1. Founded in Israel: No. IBM was incorporated in New York in 1911 [pre-2020]. Factor absent.
2. HQ or principal management in Israel: No. Armonk, New York, USA.¹⁴ Factor absent.
3. Israeli tax residency / PTE status: IBM Israel Ltd. is a registered Israeli corporate entity and is therefore subject to Israeli corporate taxation in the ordinary course. Whether IBM Israel holds Preferred Technology Enterprise (PTE) status under Israeli tax law — which provides for a reduced corporate tax rate on qualifying technology income — is not publicly disclosed in IBM’s SEC filings or annual reports at country level.¹⁴³⁵ Israel’s PTE regime is widely utilized by multinational technology companies with qualifying Israeli R&D operations, and IBM Israel and/or IBM Research — Haifa would plausibly qualify, but this cannot be confirmed from available public disclosures. Factor: unconfirmed; evidence gap identified.³⁵
4. Beneficially owned or controlled by Israeli capital: No. IBM’s beneficial ownership is dominated by US-domiciled institutional index managers. No Israeli beneficial ownership has been identified.⁴¹⁶¹⁷ Factor absent.

Summary: One factor confirmed present (registered Israeli corporate entity / operational subsidiary). One factor plausible but unconfirmed (PTE tax status). Two factors absent. IBM’s Israel presence is that of a long-established US multinational with a wholly-owned subsidiary and one of its oldest global research facilities — not a company of Israeli origin or control.

State and Institutional Linkages
– No Israeli government ownership stake in IBM has been identified. IBM is a publicly traded US corporation with no state shareholders, Israeli or otherwise.⁴¹⁶
– IBM has historically held contracts with Israeli government ministries and public-sector entities (health, finance, defense-adjacent) on a commercial basis, consistent with IBM’s global government services business.¹¹ These are arm’s-length commercial contracts and do not constitute equity or governance arrangements.
– IBM Israel has participated in Israel Innovation Authority (IIA) co-funded R&D programs.⁹³¹ Participation in IIA programs is standard practice for multinational technology companies operating R&D facilities in Israel under the Israeli Encouragement of Industrial Research and Development Law. Such participation does not constitute state ownership, government board representation, or a special governance relationship.
– No designation of IBM as critical national infrastructure in Israel has been identified in public sources reviewed.⁴⁹ No public evidence identified.

Structural Governance Features
IBM Corporation has no golden shares, founder shares, weighted voting arrangements tied to Israeli state interests, or charter provisions tying it to Israeli policy objectives.⁴ IBM’s governance follows US public company norms under New York State corporate law and NYSE listing standards.¹³ No public evidence identified of any Israel-specific governance feature.

Profit Repatriation & Economic Contribution

Revenue Attribution
IBM does not publicly disclose Israel-specific revenue in its annual reports or SEC filings.¹²³⁴ Revenue is reported at segment level (Software, Consulting, Infrastructure) and at broad geographic level (Americas; Europe/Middle East/Africa; Asia Pacific). Israel-specific revenue is subsumed within the EMEA geographic segment and cannot be isolated from available public data. No standalone Israel revenue figure is publicly available. This is an identified evidence gap.

Profit Flows
As a wholly-owned subsidiary of IBM Corporation (USA), IBM Israel Ltd.’s profits flow outward from Israel to the US parent via standard intercompany consolidation.¹²³ IBM Corporation’s global profits accrue to its US-domiciled corporate entity and are distributed to NYSE-listed shareholders.¹³⁴ There is no Israeli-domiciled entity that serves as a parent receiving profit inflows from IBM’s global operations. The direction of economic flow is unambiguously Israel → US parent, consistent with a standard multinational subsidiary structure.

IBM’s effective tax treatment of Israel-sourced income — including any use of Israel’s Preferred Technology Enterprise regime or comparable incentive structures available under Israeli tax law — is not specifically disclosed in IBM’s public filings at a country level. IBM discloses its global effective tax rate and certain deferred tax positions, but country-by-country tax data is not publicly itemized.¹⁴

Economic Ecosystem Contribution
– IBM Research — Haifa is regarded within the Israeli technology sector as a long-standing anchor institution for applied computer science research, having operated for over 50 years.⁵¹⁵³² Its alumni network spans Israeli academia and industry, and it has contributed to Israel’s positioning as a global technology hub. The lab’s historical contributions span IBM Storage, IBM Security, and IBM Watson-era AI. No formal Israeli government designation of IBM Research — Haifa as a “key national employer” or “strategic research anchor” has been identified in public documents reviewed, though the Israel Innovation Authority’s engagement with multinational R&D programs reflects this broader ecosystem role.⁹³¹
– IBM Israel participates in the broader Israeli enterprise IT market as a significant vendor of cloud, AI, and mainframe infrastructure and consulting solutions.¹¹ No formal government or industry body designation quantifying IBM’s sector significance by market share or employment contribution has been located in the sources reviewed.⁹¹⁰
– IBM’s corporate responsibility reporting¹⁰ does not separately quantify IBM Israel’s contribution to local employment, tax receipts, or economic output. No formal public designation identified.

Red Hat Israel Contribution
Red Hat Israel, as an IBM subsidiary since July 2019, contributes to IBM’s broader Israel economic footprint through its sales and support operations.³⁴ The scope of Red Hat Israel’s employment and economic contribution is not separately disclosed in IBM’s public filings. This is an identified evidence gap.

End Notes