Market Taxation Guide - Israel

26.08.2016

This Market Taxation Guide (Israel) provides the following details:

  • Reference information about all taxes applied at source, through Clearstream Banking and its local depositories, to securities deposited in Clearstream Banking; and
  • Instructions for obtaining relief at source or a refund of withholding tax, where these are available, through Clearstream Banking.

New and improved tax information and procedures that become available will be included on an ongoing basis.

Important note:

This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter. Readers of this Market Taxation Guide, whether customers or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice.

Withholding tax

Debt securities

Holding restriction

Withholding tax rate 

Relief at
source

Quick
refund

Standard
refund

Yes

0% - 26.5%

Residents of Double Taxation Treaty (DTT) countries

Yes

No

No

Tax exempt entities

Yes

No

No

Israeli Financial institutions (intermediaries)

Yes

No

No

Equities      

Holding restriction

Withholding tax rate

Relief at
source

Quick
refund

Standard
refund

Yes

0% - 25%

Residents of Double Taxation Treaty (DTT) countries

Yes

No

No

Tax exempt entities

Yes

No

No

Israeli Financial institutions (intermediaries)

Yes

No

No

Holding requirements and/or restrictions

Due to Israeli restrictions, customers are not allowed to hold Israeli financial instruments in Clearstream Banking for underlying beneficial owners who are residents of Israel for tax purposes.

Capital Gains Tax

There is no capital gains tax withheld through Clearstream Banking on securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

Stamp Duty

There is no stamp duty withheld through Clearstream Banking on securities held in Clearstream Banking. Stamp duty may however be payable on specific transactions. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.