Overview of the U.S.-Israel Tax Treaty, as Amended by the 1993 Protocol

Abstract

On January 26, 1993, the United States and Israel signed a protocol to the income tax convention between the two countries which had been signed on November 20, 1975 (the "Proposed Treaty"). Although the Proposed Treaty had been amended by an earlier protocol signed on May 30, 1980 (the "First Protocol"), and been given the advice and consent of the U.S. Senate, the Proposed Treaty has never been ratified by Israel. It is the intention that the Proposed Treaty signed in 1975, as amended by the First Protocol and the protocol signed on January 26, 1993 (the "Second Protocol"), will become the first Income Tax Treaty between the United States and Israel. The Treaty will enter into force after an exchange of the instruments of ratification has taken place.