Israel Tax Treaties 
April 2010 

Dr. Avi Nov, Adv.

   

Israel has tax treaties with about 50 countries. The treaties function to prevent double taxation by guaranteeing that the investor’s state of residence will provide either a tax credit for tax which has been paid in Israel or, alternatively, that the Israel sourced income will be exempt from tax in Israel or in the country of residence of the foreign investor.

Once a treaty is made part of Israeli law, its provisions take precedence over domestic law.

Most of Israel's tax treaties are based on the Model Tax Convention of the Organization for Economic Cooperation and Development (OECD). The Israeli tax authorities tend to interpret Israel's treaties in accordance with OECD commentaries, or by reports published by the organization on issues of international taxation.

Please note that the Israeli tax authority has issued a Statement of Practice entitled "Counteracting Tax Planning Based on Treaties for the Avoidance of Double Taxation” (Statement of Practice number 3/2001 of May 22, 2001). The Statement of Practice is intended to assist the Israel Tax Authority (ITO) to combat treaty shopping.

"Treaty shopping” is said to exist if a resident of a particular country takes steps to establish a company or any other connection to another country, with the aim of obtaining entitlement to benefits or relief under its law and tax treaties that the other country is party to.

The following are the countries which have tax treaties with Israel: 

Argentina, Austria, Belarus, BrazilBulgariaBelgium, Canada, ChinaCroatia, Czech Republic, DenmarkEthiopiaEstoniaFinlandFranceGermanyGeorgiaGreeceHungaryIndia, Ireland, Japan, Jamaica, LuxemburgLatviaLithuaniaMexicoMoldaviaNetherlandsNorway, Philippines, PolandPortugalRomaniaRussiaSingaporeSloveniaSlovak Republic, South Africa, South Korea, SpainSwedenSwitzerlandThailandTurkeyUnited KingdomUnited States, and Ukraine, Uzbekistan.

 
See also:

Dr. Avi Nov Law Offices, Israeli & international tax law 

If you wish to make an appointment to discuss your tax issues with Dr. Avi Nov, you are welcomed to send him an Email mail,envelop,message,email,letter 

 
This article is intended for informative purposes only and is in no way to be construed as tax advice or a legal opinion.
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