Client Update | Israeli Tax Authorities Introduce a New “Green Lane” For Transferring Funds Abroad For Investment Purposes Without Tax Withholding
16 October 2017
Recently, the Israeli Tax Authorities (the “ITA”) published a press release introducing a new “Green Lane” which is intended to ease the process of funds transferring from Israel to non-Israeli recipients for investment purposes (the “Green Lane”). Under the new Green Lane, Israeli banks will allow the transfer of funds for investment purposes from Israel to foreign bank accounts, without withholding of tax, based solely on a declaration signed by the transferor.
The Green Lane represents a significant change in the ITA‘s policy. Until recently, the ITA required that any Israeli resident, who wishes to transfer money abroad, must obtain a positive confirmation from the ITA that the transfer is not subject to withholding of tax. In the absence of such a confirmation the payment was subject to such withholding.
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