Israel

International transfers from customers registered in Israel are subject to withholding tax (WHT) at source by the Israel Tax Authority. In accordance with Israeli regulations, Airwallex applies the applicable WHT rate depending on the transfer reason. Some transfer reasons are only available for transfers to beneficiaries with a bank account located in a country that has a tax treaty with Israel.

Transfer reasons for international transfers from Israel

For international transfers from accounts registered in Israel (IL), the following reason values apply instead of the standard values. Use the dynamic schema API when logged in with your IL account to confirm the precise values available for your transfer scenario.

• overseas transfer to same name account
• transfer between israeli residents accounts
• payment for private car purchase
• payment for tourism services entirely abroad
• insurance services covering risks abroad
• purchase of flight tickets abroad
• tuition fees to educational institutions abroad
• participation fees for seminar or exhibition abroad
• advertising expenses abroad
• participation fees in tenders abroad
• correspondent fees for banks abroad
• payment for land, sea, air transport entirely abroad
• payment for port, freight, storage services abroad
• agent fees (maximum 5% or $10,000 commission)
• payment for off-the-shelf software import (≤ $1,000 per item)
• fees for international organization membership
• advance refund to a customer abroad, without interest, not exceeding down payment
• allowances paid to foreign resident according to israeli law
• acquisition of social rights from a foreign state or institution owned by a foreign state
• resident investing in foreign stock exchange securities
• proceeds from selling tel aviv stock exchange securities
• gift or support payment from an individual to a relative
• payment of private property rent abroad, not claimed as business expense
• allowance for medical travel and treatment expenses

The following values are only available when the beneficiary's bank account is in a tax treaty country. See the list of countries with a tax treaty with Israel below.

• investing in non-publicly traded non-resident company shares
• real estate investment outside israel
• investment in tangible assets located abroad
• granting a loan to a foreign resident
• granting an owner's loan to non-resident corporation
• investing in foreign partnership rights outside of israel
• purchase of options
• payment of exercise price on exercised options

Countries with a tax treaty with Israel