Prevention of Tax Treaty Abuse – Third Peer Review Report on Treaty Shopping

Israel

A. Progress in the implementation of the minimum standard

Israel has 58 tax agreements in force, as reported in its response to the Peer Review questionnaire. Twenty-five of those agreements, the agreements with Australia, Austria, Belgium, Canada, Denmark, Finland, France, Georgia, India, Ireland, Japan, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Russia, Serbia, Singapore, the Slovak Republic, Slovenia, Ukraine, and the United Kingdom comply with the minimum standard.

Israel signed the MLI in 2017 and deposited its instrument of ratification on 13 September 2018. The MLI entered into force for Israel on 1 January 2019. Israel has not listed its agreements with Germany and Switzerland but indicated in its response to the Peer Review questionnaire that bilateral negotiations would be used with respect to those agreements.

Israel is implementing the minimum standard through the inclusion of the preamble statement and the PPT.1

The agreements modified by the MLI come into compliance with the minimum standard once the provisions of the MLI take effect.

B. Implementation issues

No jurisdiction has raised any concerns about their agreements with Israel.

Summary of the jurisdiction response - Israel

 

	Treaty partners	Compliance with the standard	If compliant, the alternative implemented	Signature of a complying instrument	The alternative implemented through the complying instrument (if not the MLI)	Comments
1	Armenia	No	N/A	Yes	N/A
2	Australia	Yes	PPT alone	N/A	N/A
3	Austria	Yes	PPT alone	N/A	N/A
4	Azerbaijan*	No	N/A	Yes	N/A
5	Belarus*	No	N/A	Yes	N/A
6	Belgium	Yes	PPT alone	N/A	N/A
7	Brazil	No	N/A	Yes	N/A
8	Bulgaria	No	N/A	Yes	N/A
9	Canada	Yes	PPT alone	N/A	N/A
10	China (People's Republic of)	No	N/A	Yes	N/A
11	Chinese Taipei*	No	N/A	Yes	N/A
12	Croatia	No	N/A	Yes	N/A
13	Czech Republic	No	N/A	Yes	N/A
14	Denmark	Yes	PPT alone	N/A	N/A
15	Estonia	No	N/A	Yes	N/A
16	Ethiopia*	No	N/A	Yes	N/A
17	Finland	Yes	PPT alone	N/A	N/A
18	France	Yes	PPT alone	N/A	N/A
19	Georgia	Yes	PPT alone	N/A	N/A
20	Germany	No	N/A	No	N/A	An amending protocol was initiated. It is compliant with Action 6 minimum standard.
21	Greece	No	N/A	Yes	N/A
22	Hungary	No	N/A	Yes	N/A
23	India	Yes	PPT alone	N/A	N/A
24	Ireland	Yes	PPT alone	N/A	N/A
25	Italy	No	N/A	Yes	N/A
26	Jamaica	No	N/A	Yes	N/A
27	Japan	Yes	PPT alone	N/A	N/A
28	Korea	No	N/A	Yes	N/A
29	Latvia	Yes	PPT alone	N/A	N/A
30	Lithuania	Yes	PPT alone	N/A	N/A
31	Luxembourg	Yes	PPT alone	N/A	N/A
32	Malta	Yes	PPT alone	N/A	N/A
33	Mexico	No	N/A	Yes	N/A
34	Moldova*	No	N/A	Yes	N/A
35	Netherlands	Yes	PPT alone	N/A	N/A
36	North Macedonia	No	N/A	Yes	N/A
37	Norway	No	N/A	Yes	N/A
38	Panama	No	N/A	Yes	N/A
39	Philippines*	No	N/A	Yes	N/A
40	Poland	Yes	PPT alone	N/A	N/A
41	Portugal	Yes	PPT alone	N/A	N/A
42	Romania	No	N/A	Yes	N/A
43	Russia	Yes	PPT alone	N/A	N/A
44	Serbia	Yes	PPT alone	N/A	N/A
45	Singapore	Yes	PPT alone	N/A	N/A
46	Slovak Republic	Yes	PPT alone	N/A	N/A
47	Slovenia	Yes	PPT alone	N/A	N/A
48	South Africa	No	N/A	Yes	N/A
49	Spain	No	N/A	Yes	N/A
50	Sweden	No	N/A	Yes	N/A
51	Switzerland	No	N/A	No	N/A	An amending protocol was initiated. It is compliant with Action 6 minimum standard.
52	Thailand	No	N/A	Yes	N/A
53	Turkey	No	N/A	Yes	N/A
54	Ukraine	Yes	PPT alone	N/A	N/A
55	United Kingdom	Yes	PPT alone	N/A	N/A
56	United States	No	N/A	Yes	N/A
57	Uzbekistan*	No	N/A	Yes	N/A
58	Viet Nam	No	N/A	Yes	N/A