Israel is a signatory to a Treaty for the Prevention of Double Taxation with 37 countries all over the world. Draft agreements with additional countries are at the discussion stages.

A Double Taxation Prevention Treaty, in principle, enables offsetting tax paid in one of 2 countries against the tax payable in the other, in this way preventing double taxation.

It is of the utmost importance to stress that the Double Taxation Prevention Treaty takes precedence, in all cases, over the Israeli Income Tax Ordinance. In other words, if certain income is taxable under the Israeli Income Tax Ordinance but there is an exemption (reduced tax) under any Taxation Treaty, the income is taxed, if at all, but only according to the provisions of the Taxation Treaty.

Double Taxation Agreements : List of Countries