New UK-Israeli Tax Agreements: Zero & Reduced Tax Protocols on Dividends & Royalties

Israel and the UK have been working together to release updated rules regarding their double taxation agreements and have signed a new protocol effectively reducing the Israeli tax payable on shares paid and sourced between the two jurisdictions.

Going forward, no Israeli taxation will be applicable to cross-border royalties. The new terms of the agreement also include several anti-abuse provisions limiting treaty benefits to businesses conducting genuine business activities, and conform to the exchange of relevant tax data.