Exemption From Withholding Tax for Foreign Residents

What conditions apply to qualify for the exemption?

According to Israeli law, a foreign resident who holds a bank account in Israel is required to sign a statement confirming foreign residency, as a condition for exemption from withholding tax.

הצהרת הלקוח/ה על היותו/ה תושב חוץ לעניין פקודת מס הכנסה

Foreign Residents' Declaration for purposes of the Income Tax Ordinance 

(Déclaration du client sur son statut de résident étranger (* concernant la loi de l'impôt sur le revenu 

When should the form be signed in order to receive the exemption?

When opening the account and subsequently, once every 3 years.

• Since when has the law been in effect? 
  Starting on 1.1.2009, a foreign resident who has not signed the form will be taxed on foreign currency interest, capital gains and certain profits from deposited securities
• How is an account handled that has a number of partners? 
  For an account registered in the name of several partners, each partner must sign a separate statement.
   
• What should be done with the form?
  Fill out and sign the form and send it to the branch by mail, fax or by any other means.
   

More information is available at the branch where your account is held.

To locate a branch near you, press here