Beneficial owners - Israel

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)

Residents of a Double Taxation Treaty (DTT) country

Relief at source is available to beneficial owners who qualify for the benefit of a reduced rate of withholding tax in accordance with a Double Taxation Treaty (DTT) between their country of residence and Israel. The maximum rate of withholding tax is defined in the relevant DTT.

A reclaim of the relevant amount of withholding tax is not available through Clearstream.

Tax-exempt entities

Exemption at source is available to beneficial owners who are recognised as tax-exempt by the Israeli Tax Authorities.

A reclaim of the relevant amount of withholding tax is not available through Clearstream.

Israeli financial institutions acting as intermediaries (not beneficial owners)

Exemption at source is available to Israeli financial institutions acting as intermediaries as such entities, are considered as Israeli tax withholding agents, implying they must comply with the relevant withholding and reporting requirements for their respective clients.

A reclaim of the relevant amount of withholding tax is not available through Clearstream.