Canada, Israel sign tax treaty, text available

The governments of Canada and Israel signed a new tax treaty on September 21, Canada’s Department of Finance has announced.

The tax treaty reduces withholding tax to 5% for dividends paid to a company that holds directly or indirectly at least 25% of the capital of the company that pays the dividends, to 15% for dividends paid in all other cases, and to 10% for payments of interest and royalties.

The treaty also exempts from withholding tax some payments of interest and royalties.

The treaty includes provisions on exchange of information for tax purposes.

The agreement is not yet in force.

See:

• Treaty