Dr. Avi Nov, Adv.
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. These treaties will enter into force on completion of ratification proceedings in the two countries.
See also: Israel Tax Treaty with Panama
Israel Malta Tax Treaty
According to the tax treaty with Malta, the tax withholding rates in the country where the payment is made (the country of origin) have been set at 5% of interest payments and 0%-15% of dividends. With regard to royalties and capital gains, taxation will be only in the seller’s country of domicile. 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 12 months. 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.
Israel Panama Tax Treaty