Israel Tax Treaties with Malta and Panama

Israel Tax Treaties with Malta and Panama

Dr. Avi Nov, Adv.

August, 2011

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

For general information on Israeli tax treaties, see: Israel Tax Treaties.

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

According to the tax treaty with Panama, 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 9 months. The tax treaty 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.

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