Israel: Increase of withholding tax on income distributions from Oil and Gas Limited Partnership distributions
Clearstream Banking1 would like to inform customers that the Israeli Tax Authorities (ITA) has announced that effective
1 January 2022
income distributions from Israeli equities that are considered as Oil and Gas Limited Partnership distributions will be treated as ordinary dividends subject to 25% withholding tax.
Currently such distributions are not treated as ordinary dividends and are by default subject to 0% withholding tax for non-resident beneficial owners.
Impact on customers
From 1 January 2022, Oil and Gas Limited Partnership distributions will be treated as ordinary dividends subject to 25% withholding tax by default.
Relief at source from withholding tax on dividends from Israeli equities is available for eligible beneficial owners through Clearstream Banking, as per the procedures stated in the Market Taxation Guide - Israel.
Further information
For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.