Canada: Tax Convention Signed with the State of Israel

Par Robert Robillard - 23 septembre 2016

This blogpost originally appeared on rbrt.ca.

Finance Canada indicated today:

« A new Convention between the Government of Canada and the Government of the State of Israel for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income was signed in New York on September 21, 2016.

The new Convention limits the rate of 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 new Convention also exempts from withholding tax certain payments of interest and royalties.

The new Convention includes provisions reflecting the standard developed by the Organisation for Economic Co-operation and Development for the exchange of information for tax purposes.

The new Convention will enter into force once Canada and the State of Israel have notified each other that the procedures required by their laws for the bringing into force of the Convention have been completed. The new Convention will have effect in accordance with Article 28 of the Convention. »

The complete text of the Convention between the Government of Canada and the Government of the State of Israel for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income is available here: http://www.fin.gc.ca/treaties-conventions/israel_1-eng.asp

The library on Transfer Pricing in Canada is available here.

Robert Robillard, Ph.D., CPA, CGA, Adm.A., MBA, M.Sc. Econ., M.A.P.
Senior Partner, RBRT Inc.
514-742-8086; robertrobillard « at » rbrt.ca
www.rbrt.ca

The convergence of RBRT’s tax, accounting and economics expertise makes a difference. The information in this blog post is general information only. Data and information come from sources believed to be reliable but complete accuracy cannot be guaranteed. RBRT Inc. or the author are not responsible or liable for any error, omission or inaccuracy in such information. The opinions expressed in this blogpost are those of the author. Readers should seek advice and counsel from RBRT Inc. as required.