Equities - rates, eligibility, availability of relief etc. - Israel
Standard rate on equities
0% - 25%
A dividend distribution on Israeli equities in Clearstream Banking may comprise various components, each subject to its own rate of withholding tax, that together constitute the total distribution payment.
The withholding tax rate may therefore be a weighted average of the different rates based on the different sources of income that make up the dividend distribution, as follows:
|Non-resident withholding tax rate|
25% or DTT rate
Approved Enterprise: a
The Grants Track
10% or 24%
The Improved Track (Ireland Track)
The Strategic Track
Corporations with Overseas Investors
Rate dependent on source of income
a. Dividends of an Israeli company derived from the income of an Approved Enterprise, if distributed either during the benefits period or during the twelve following years (or without limitation as to their distribution date, where paid by a foreign investment company out of its Approved Enterprise profits) shall be subject to a 15% dividend withholding tax.
The Approved Enterprise preferential rate of withholding tax may be subject to a possible reduction under tax treaties that make specific reference to the application of the Law for the Encouragement of Capital Investments.
Customers are reminded that it is their responsibility to ensure that final beneficial owners are eligible for the tax rate applied, including the Clearstream Banking default rates.
It is the customer's responsibility to comply with this obligation. Neither Clearstream Banking nor its local depository has any direct or indirect liability towards the Israeli authorities in this regard.