Israel: Israeli financial institutions now eligible to hold Israeli securities and to benefit from tax exemption

10.03.2016

Effective

immediately

Clearstream Banking1 customers that are Israeli financial institutions acting as intermediaries are now eligible to hold Israeli securities (Government bonds, Treasury Bills, Corporate bond or Equities) and to benefit from full tax exemption, provided that certain conditions are met.

Previously only non-residents could hold Israeli securities via Clearstream Banking.

Israeli financial institutions, acting as intermediaries, are considered as Israeli tax withholding agents, implying they must comply with the relevant withholding and reporting requirements for their respective clients.

Impact on customers

Following the amended holding restriction, the Israeli financial institutions must submit the following form which will remain valid until its revocation:

  • Israeli Securities One-Time Certificate for Israeli financial institutions acting as intermediaries

The form is available under Tax Forms to use - Israel.

The applicable deadline to submit the document is before the execution of the first trade of the Israeli securities to be settled in Clearstream Banking.

Further information

For further information about procedures, customers may contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.