A “HISTORIC” new tax treaty between Australia and Israel has been hailed as “representing an important milestone in removing tax barriers and facilitating trade and investment” between the two countries.
The deal was ratified by the Australian government last Friday.
According to a statement by federal Treasurer Josh Frydenberg and Assistant Treasurer Michael Sukkar, the treaty will enhance the bilateral economic relationship between Australia and Israel by reducing taxation barriers that could impede economic activity between the two countries, providing greater certainty for taxpayers in both countries and improving the integrity of the tax system.
It also provides a framework for the revenue authorities of Australia and Israel to cooperate, and better tackle tax avoidance practices by giving effect to the Base Erosion and Profit Shifting (BEPS) recommendations made by the G20 and OECD.
“Australia and Israel share a close friendship with strong ties,” the statement said.
“The new tax treaty between Australia and Israel will ensure the economic, trade and commercial relationship between our two countries is strengthened.
“We are delighted at the ratification of the bilateral Agreement for the Elimination of Double Taxation which will catapult our economic relations into a new era,” said Israeli ambassador to Australia Mark Sofer.
“The agreement will provide a platform for enhanced two-way investment opportunities and represents yet a further milestone in the burgeoning relations between Australia and Israel.”
CEO of the Australia-Israel Chamber of Commerce, Michelle Blum, remarked, “This new treaty will reduce withholding tax rates and potential double taxation and provide greater certainty for taxpayers in both countries. It will also help boost bilateral trade and investment flows and enhance the already strong and growing economic relationship between Australia and Israel.”