General information - types of securities, deadlines, other market specifics - Israel
Types of securities
The securities issued in Israel and eligible in Clearstream Banking are as follows:
- Government bonds (including floating-rate and fixed-income bonds) issued with a maturity of more than 13 months;
- Corporate bonds;
Types of beneficial owner
The following types of beneficial owner are recognised for tax purposes in Israel:
- Residents of a Double Taxation Treaty (DTT) country;
- Tax-exempt entities.
- Israeli financial institutions, acting as intermediaries (not beneficial owners)
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.
The only exception is for Clearstream Banking customers that are Israeli financial institutions acting as intermediaries that submit the required one-time certificate confirming they are Israeli tax withholding agents, implying they must comply with the relevant Israeli tax withholding and reporting requirements for their respective clients.
In order to be allowed to hold Israeli securities, customers must provide the following documentation depending on the residency of the Clearstream customer:
- an Israeli Securities - One-time Certificate certifying that none of the final beneficial owners is an Israeli resident for tax purposes.
Israeli financial institutions acting as intermediaries:
- an Israeli Securities - One-time Certificate for Israeli financial institutions acting as intermediaries certifying that it is considered as Israeli tax withholding agent, implying it must comply with the relevant withholding and reporting requirements for its respective clients.