Signing of the Agreement between Singapore and Israel for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income20 May 2005
A new Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income was signed on 19 May 2005 between the Government of the Republic of Singapore and the Government of the State of Israel.
2 The signing took place in Israel. Senior Minister Goh Chok Tong signed on behalf of Singapore and Finance Minister Benjamin Netanyahu signed on behalf of Israel.
3 The new Agreement will replace the previous one signed on 27th September 1971. While the previous Agreement has worked well for both countries, changes in economic circumstances and policies have since made it necessary to review and revise the old Agreement and further strengthen the economic relations between the two countries.
4 The terms of the new Agreement will continue to serve the purpose of avoidance of double taxation on income earned in one country by a resident of the other. The new Agreement will continue to facilitate the cross-flow of trade, investment, financial activities and technical know-how between Singapore and Israel. Improvements in the new Agreement include enhancements to the withholding tax rates; for example, the withholding tax rate on interest income is reduced from 15% to 7%.
5 The new Agreement will enter into force after ratification by both countries. The provisions of the new Agreement will apply to income arising in the year after its entry into force. The provisions of the old Agreement will cease to apply from then on. Details of the new Agreement are available on the website of the Inland Revenue Authority of Singapore at www.iras.gov.sg
MINISTRY OF FINANCE