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Israel Tax Treaties
Israel is a signatory to a Treaty for the Prevention of Double
Taxation with 37 countries all over the world. Draft agreements with
additional countries are at the discussion stages.
A Double Taxation Prevention Treaty, in principle, enables
offsetting tax paid in one of 2 countries against the tax payable in
the other, in this way preventing double taxation.
Another important factor is the grant of an exemption or tax at a reduced rate
on certain receipts such as interest, royalties, dividends, capital gains and
others that are connected with a transaction carried out between parties
associated with the Double Taxation Prevention Treaty. It is of the utmost
importance to stress that the Double Taxation Prevention Treaty takes
precedence, in all cases, over the Israeli Income Tax Ordinance. In other words,
if certain income is taxable under the Israeli Income Tax Ordinance but there is
an exemption (reduced tax) under any Taxation Treaty, the income is taxed, if at
all, but only according to the provisions of the Taxation Treaty.
Double Taxation Agreements : List of Countries
|
Recipient of the payment is a resident of the following country |
From
royalties |
From
interest |
From a
dividend |
From
capital gains |
|
Austria |
10 |
15 |
25 |
Exempt |
|
Italy
|
10 |
10 |
10:15 |
Exempt |
|
Ireland |
10 |
5:10 |
10 |
Exempt |
|
United States of America |
15 |
10:17.5 |
12.5:25 |
Exempt |
|
Belgium |
10 |
15 |
15 |
Exempt |
| Great
Britain and N. Ireland |
Exempt |
15 |
15 |
Exempt |
|
Jamaica |
10 |
15 |
22: 5 : 15 |
Exempt |
|
Germany |
5 |
15 |
25 |
Exempt |
|
Denmark |
10 |
25 |
25 |
Exempt |
| South
Africa |
Exempt |
25 |
25 |
Exempt |
| South
Korea |
10 |
7.5: 10 |
5: 10: 15 |
Exempt |
| India |
10 |
10 |
10 |
Exempt |
|
Holland |
5 |
15 |
5 : 10: 15 |
Exempt |
|
Hungary |
Exempt |
Exempt |
5:15 |
Exempt |
|
Turkey |
10 |
6:10 |
10 |
Exempt |
|
Greece |
10 |
10 |
25 |
Exempt |
| Japan |
10 |
10 |
5:15 |
Normal tax |
|
Norway |
10 |
10 |
25 |
Exempt |
| China |
10 |
7:10 |
10 |
Exempt |
|
Singapore |
Exempt |
15 |
Exempt |
Normal tax |
|
Poland |
5:10 |
5 |
5:10 |
Exempt |
|
Philippines |
15 |
10 |
10: 15 |
Exempt |
|
Finland |
10 |
10 |
5: 10: 15 |
Exempt |
| Czech
Republic |
5 |
10 |
5:15 |
Normal tax |
|
France |
10 |
5:10 |
5:15 |
Exempt |
|
Canada |
15 |
15 |
15 |
Exempt |
|
Rumania |
10 |
5:10 |
15 |
Exempt |
|
Sweden |
Exempt |
25 |
Exempt |
Exempt |
|
Thailand |
15 |
15 |
15 |
Exempt |
|
