This new treaty will first and foremost create better conditions for trade and investment related to technology.
For example, the enormous, diverse and ever-dynamic Israeli hi-tech market will be more accessible to Australian businesses by reducing the withholding tax rates on royalties. Whereas Australian businesses were previously required to withhold 30 per cent on royalty payments to Israeli entities, the treaty caps withholding at five per cent. Although withholding tax is technically a tax on the recipient of the royalty
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