Financial Secretary to the Treasury Rt. Hon. Mel Stride MP on Thursday signed a new agreement to boost trade and update the double taxation convention (DTC) with Israel.
The Protocol to the UK/Israel DTC will facilitate investment in Israel by UK companies in a number of ways, including a reduction in the rates of Israeli tax payable on dividends paid from Israeli companies to the UK. Israeli investors into the UK will benefit from the same reductions on UK tax.
Financial Secretary to the Treasury Mel Stride said: “I’m delighted to sign this deal with such a close ally, and pleased we now have a treaty that reflects the latest international standards. It is a sign of the continued excellent cooperation between our two countries”
Mr Stride added: “This agreement will facilitate UK investment into Israel by removing tax barriers to cross-border trade. It will also provide important protections against those who seek to use the treaty for tax avoidance purposes”.
The Secretary of State said on Twitter that it was a “pleasure to be joined by Ambassador Mark Regev to sign a new tax agreement to boost investment between the UK and Israel. Trade in goods between our two countries was worth over $7bn in 2017 – we want it to grow”.
Bilateral trade between the two countries reached a record high of over $7 billion in 2017.
The UK’s leading exports to Israel are machinery and electrical equipment, while pharmaceuticals account for more than 70 per cent of Israeli exports to the UK. Israeli companies are major suppliers to the NHS.
Click here to read HM Treasury’s full statement.
