Finance recently announced that Canada has signed a tax convention with Israel.
The treaty, signed September 21, 2016, includes provisions that reflect the OECD standards for the exchange of tax information. This new treaty with Israel will limit the rate of withholding tax to:
As well as changing withholding rates, the treaty added the following key provisions:
The treaty will enter into force once Canada and Israel have notified each other that the procedures required by their laws for bringing the treaty into force have been completed. In Canada, the treaty will apply to taxes withheld at source on amounts paid or credited to non-residents, beginning on January 1 of the first calendar year after the treaty has entered into force. For other taxes, it will apply for taxation years beginning on or after January 1 of the calendar year after the calendar year in which the Convention has entered into force.
Once the treaty comes into force, it will replace the existing 1975 treaty.
For more information, contact your KPMG adviser.
Information is current to October 18, 2016. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500