preface

8.10. TAX TREATIES
136
TAXATION
As of January 2011, Israel is party to some 50 double taxation treaties. Part of
these have recently been signed, while in the case of others, the Ministry of
Finance is holding discussions with the relevant countries with a view to
renewing the treaties, usually by applying all or part of the provisions of the
OECD model.
Meanwhile, new double taxation treaties were recently signed with Denmark
and the U.K., designed to replace the old ones. Furthermore, a treaty has for
the first time been signed with Georgia. These are expected to become effective
once they have been ratified by Israel and the relevant countries.
8.10.1. Treaty Withholdings
The following table summarizes withholding tax rates on dividends,
interest and royalties in accordance with various tax treaties. It should
be noted that the data listed below are subject to specific provisions of
each treaty.
Dividends
%
Interest
%
Royalties
%
Non-treaty countries 20/25 Variable 25
Austria 25 15 0/10
Belarus 10 5/10 5/10
Belgium 15 15 0/10
Brazil 10/15 15 10/15
Bulgaria 10/12.5 5/10 12.5
Canada 15 15 0/15
Croatia 5/10/15 5/10 5
China 10 7/10 10
Czech Republic 5/15 10 5
Denmark** 5/15/25 25 10
Ethiopia 5/10/15 5/10 5
Estonia 0/5 5 0
Finland 5/15 10 10
France 5/10/15 0/5/10 0/10
BDO Israel