As mentioned in our 10th Tax Alert, a treaty for the avoidance of double taxation was initiated on November 2010 by and betweenIsrael and Malta.

On August 2011, the treaty was signed by both countries, and will enter into force following the formal ratification procedure by both states, assumingly not before 2013. For details regarding the treaty’s expected provisions, please refer to Tax Alert no. 10. Furthermore, the Israeli ministry of Finance has announced that a treaty for the avoidance of double taxation was initiated by and between Israel and Panama.
According to that announcement, the treaty will limit the withholding tax rate on interest, royalties and dividends paid to a resident of the contracting state by a resident of the other state to 15%. In addition, the new treaty will include an article regarding exchange of information between the tax authorities of both countries.

The treaty will enter into force following the formal signing and ratification procedure by both states, assumingly not before 2013.