Israel and Panama signed double taxation treaty

The treaty includes a clause for the exchange of information between the tax authorities
 
The governments of Panama and Israel signed a treaty to avoid double taxation.
 
The treaty initialed with Panama includes a clause for the exchange of information between the tax authorities of both countries, based on the model treaty of the OECD. The treaty will enter into effect upon completion of ratification proceedings in the two countries, which could take a year or two.
 
According to the treaty the tax withholding rates in the country where the payment is made (the country of origin) have been set at 15% of interest, dividends and royalty payment. A company carrying out a construction project in the other country will be charged tax in that country only if the project‘s duration is over nine months.
 
The Israeli negotiations teams were headed by Talia Dolan-Gadish, Attorney at Law, legal advisor to the State Revenues Department. Team members included Rivka Lapiner, CPA, Senior Deputy to the State Revenue Commissioner, Sharon Aharoni, CPA (and Attorney at Law), Director of the International Taxation Unit at the Israel Tax Authority, and Noam Kot, Attorney at Law, from the Legal Bureau of the Israel Tax Authority.