On 28 March 2019, Australia and Israel signed a new tax treaty, available on the Treasury’s website.
The new tax treaty reduces tax impediments to bilateral trade and investment. In particular, the tax treaty alleviates double taxation by lowering withholding tax rates (on cross border interest, dividend and royalty payments) and also includes OECD/G20 base erosion and profit shifting (BEPS) recommendations to target international tax avoidance practices.
The Australia-Israel tax treaty will enter into force once both countries have completed their domestic requirements to bring the new tax treaty into force, including amending Australia’s domestic law.
The Government has released draft legislation to implement the new treaty. The draft legislation and accompanying explanatory memorandum also includes amendments to ensure that Australia can exercise its taxing rights under the new tax treaty and all future tax treaties, by deeming certain income to have an Australian source.
The Government welcomes comments on the draft legislation and draft explanatory memorandum.
You can submit responses to this consultation up until 21 August 2019. Interested parties are invited to comment on this consultation.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.
Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
View our submission guidelines for further information.
How To Respond
Address written submissions to:
Corporate and International Tax Division
PARKES ACT 2600
Phone: Ms Ronita Ram 02 6263 3168