Latest News Israel

Two new tax treaties signed with Malta and initialed with Panama

Share |
Wednesday, September 21st, 2011

As reported in Port2port:

The treaties will enter into effect on completion of ratification proceedings in the two countries

A treaty for the avoidance of double taxation has been signed between Israel and Malta, and a treaty for the avoidance of double taxation has been initialed between Israel and Panama.

The treaties will enter into effect on completion of ratification proceedings in the two countries.

The treaty signed with Malta includes a clause for the exchange of information between the tax authorities of both countries, based on the model treaty of the OECD.

The treaty initialed with Panama also includes a clause for the exchange of information between the tax authorities of both countries, based on the model treaty of the OECD.

The tax withholding rates in the country where the payment is made (the country of origin) have been set at 15% of interest, dividends and royalty payment. A company carrying out a construction project in the other country will be charged tax in that country only if the project’s duration is over nine months.

Director of State Revenue Department in the Israeli Ministry of Finance, Acc. Frida Israeli, said, “the treaties have been signed as part of the Ministry of Finance’s policy of expanding the network of treaties signed by Israel, which grant concessions regarding double taxation stemming from mutual investments on the one hand, and enable the exchange of information between the countries’ tax authorities on the other.”