09:05
Reported

News Brief

  3/31/2008, Adar Bet 24, 5768

Israel Signs Tax Treaties With 3 Countries


Israel has signed three new tax treaties, based on a format by the Organization for Economic Cooperation and Development (OECD), with Portugal, Taiwan and Moldova. The treaties will prevent double taxation and aim to encourage investment.

Taxes will be deducted in the country where a payment is made, with rates of 7 percent on interest payments to banks, 10 percent on other interest payments, and 10 percent on dividends and royalties. When Israel joins the OECD, the tax levied on dividends and royalties will be lowered.