Germany and Israel, on August 21, signed a revised and modernized double taxation convention, updating their agreement which was last modified in 1977.
The agreement reduces withholding tax on interest and dividends from 25 percent to 10 percent or 5 percent and eliminates the source state’s right to tax royalties. The agreement also improves the exchange of information on tax matters between the two states, bringing it into line with international standards, and provides that pensions paid as compensation for political persecution or for injury or damage sustained as a result of war (including restitution payments) will not be taxed in either state. Release
