Market Taxation Guide - Israel
This Market Taxation Guide (Israel) provides the following details:
- Reference information about all taxes applied at source, through Clearstream Banking1 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
Corporate bonds | Holding restriction | Withholding tax rate | Relief at | Quick | Standard |
Yes | 0% | NA | NA | NA | |
Government bonds issued after 7 May 2000 | Holding restriction | Withholding tax rate | Relief at | Quick | Standard |
Yes | 0% | NA | NA | NA |
| For Government bonds issued before 8 May 2000 | Holding restriction | Withholding tax rate | Relief at | Quick | Standard |
Yes | 23% | ||||
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 | Quick | Standard |
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.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A. and Clearstream Banking AG (for Clearstream Banking AG customers using Creation accounts)