What is the interest withholding rate between Israel and South Africa?
The Israel-South Africa tax treaty reduces the withholding rate on interest payments to 0%. This means interest paid between residents of these two countries is exempt from withholding tax at source. This is particularly beneficial for cross-border debt financing and bank deposits. The 0% rate still requires proper documentation — it does not apply automatically. Interest is fully exempt — Israel has 2 such treaties in its network.
Network Comparison
Israel
Rank 2 of 24 active treaties (lowest rate = #1)
Lower rates with: Hungary (0%)
Higher rates with: Switzerland (5%), Czech Republic (5%), Germany (5%)
South Africa
Rank 9 of 37 active treaties (lowest rate = #1)
Lower rates with: United Kingdom (0%), Hungary (0%), Ireland (0%)
Higher rates with: Luxembourg (0%), Netherlands (0%), Norway (0%)