The UK and Israeli governments have signed a new protocol to update their 1962 tax treaty, the UK’s HM Treasury announced January 17.
The new UK, Israel tax treaty protocol, signed January 11, reduces withholding taxes on dividends and interest and provides for no Israeli tax on royalties.
It also adds modern rules to prevent tax treaty shopping.
“This agreement will facilitate UK investment into Israel by removing tax barriers to cross-border trade. It will also provide important protections against those who seek to use the treaty for tax avoidance purposes,” said UK Financial Secretary to the Treasury Mel Stride.
The new agreement is not yet in force.
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