Treasury Management Profile 2016 France. Treasury Management Profile 2016 Israel

Transcription

1 Treasury Management Profile 2016 France Treasury Management Profile 2016

2 Contents Introduction...3 Legal and Regulatory...5 Taxation...7 Banking Payment Instruments Payment Systems Cash Management Electronic Banking Trade Finance Useful Contacts This is one of a series of Guides specifically designed for treasury managers offering a detailed picture of the banking and cash management arrangements for an extensive range of locations. Please note that the information contained in this document is of a general nature only and is subject to change whether for economic, political, social or other reasons. It is not intended to be comprehensive and does not constitute financial, legal, tax or other professional advice on which you should rely. Accordingly you should not act upon the information contained in this document without obtaining your own independent professional advice. The materials contained in this document were assembled in January 2016 (unless otherwise dated) and were based on the law enforceable and information available at that time. We make no representations, warranties or guarantees (express or implied) that the information in this document is complete, accurate or up to date. We will not be liable for any liabilities arising under or in connection with the use of, or any reliance on, this document or the information contained within it. 2

3 Introduction Capital/Other major cities: Jerusalem*/Tel Aviv, Haifa Area: 20,770km 2 Population: 8.05m Languages: Currency: Hebrew, Arabic, English New i shekel (ILS) Country telephone code: 972 Weekend: National holidays: Source: Business hours: Banking hours: Stock exchange: Leading share indices: Sectoral distribution of GDP (% of GDP): Saturday Mar, 11, 17 Apr, 2, 31 May, 1 Aug, 21, 22, 29, 30 Sep, 12 Oct , 31 Mar, 6, 19 Apr, 20 May, 22 Jul, 10, 11, 18, 19, 24 Sep, 1 Oct 08:30 18:30 (Sun Thu), 08:30 14:00 (Fri) 08:30 18:30 (Sun Thu), 08:30 14:00 (Fri) Tel Aviv Stock Exchange (TASE) TA 25 Index, TA 100 Index Agriculture 2.5%, Industry 27.3%, Services 70% (2015 estimate) * has proclaimed Jerusalem as its official capital since 1949, but most countries, including the USA, continue to maintain their embassies at Tel Aviv. Government Legislature Parliamentary democracy with a unicameral parliament, the Knesset. Knesset: 120 members are elected to serve four year terms. Head of state Reuven Rivlin, president since 24 July The president is elected by the Knesset every seven years. Political leader Binyamin Netanyahu, prime minister since 31 March

4 Economy Q3 Q4 Year Q1 Q2 Exchange rate* (ILS/USD) Interest rate* (lending rate) (%) NA NA NA NA Unemployment (%) NA 5.0 NA Consumer inflation** (%) GDP volume growth** (%) Ø NA GDP (ILS bn) ,001 1,056 1,094 1,150 GDP (USD bn) GDP per capita (USD) 31,389 34,717 33,760 37,392 38,498 36,724 BoP (goods/services/income) as % GDP * Period average. ** Year on year. Sources: IMF, International Financial Statistics, September 2016 and 2015 Yearbook. Country credit rating Fitch Ratings rates for issuer default as: Term Issuer Default Rating Short F1 + Long A + Long-term rating outlook Stable Source: January Exports account for 40% of s GDP; the USA is its biggest export market (30% of overall exports). In April 2016, weakening global demand saw exports fall 11%, the biggest drop since August

5 Legal and Regulatory Central bank Established in December 1954, the Bank of is an autonomous institution operating in accordance with the new Bank of Law, the Banking Law and the Currency Control Law. Bank supervision The Bank of s Banking Supervision Department supervises the banking sector in. Resident/non-resident status A company is considered resident in if it is either incorporated in or controlled and managed from. Bank accounts Foreign exchange accounts can be held by residents both domestically and abroad. Resident domestic currency (ILS) accounts can be held abroad and are freely convertible into foreign currency. Non-resident bank accounts are permitted in both foreign and domestic currency. Non-resident domestic currency accounts can also be held abroad. Nonresident domestic currency accounts are freely convertible into foreign currency. Interest can be offered on savings accounts and time deposits. Overdraft facilities are available to residents and non-residents. Reporting All transactions between residents and non-residents must be reported to the Bank of for monetary reasons and balance of payments purposes. Banks are responsible for submitting transactions data to the Bank of on behalf of their clients on a daily and weekly basis. Exchange controls The new i shekel (ILS) is s official currency. does not apply foreign exchange controls. The Bank of participates in the foreign exchange derivatives market for the purposes of stabilising the ILS/FCY exchange rate. Anti-money laundering/counter-terrorist financing 1 has implemented anti-money laundering and counter-terrorist financing legislation, including: Prohibition on Money Laundering Law No 5760 of 2000, most recently amended by Laws No 5772 of 2012 and Law No 5774 of 2014, along with various subsequent Regulations and Orders, most recently No 411 of 2010; Combating Criminal Organisations Law No 5763 of 2003 as amended 2006; and Combating Terrorism Law No 5776 of is a member of the Council of Europe s MONEYVAL Select Committee as an active observer. has an established financial intelligence unit, the i Money Laundering and Terror Financing Prohibition Authority (IMPA), which is a member of the Egmont Group. Account opening procedures require formal identification of the customer, as well as beneficial owners, beneficiaries and any third parties acting on their behalf. Authorised signatories are required to provide proof of their authorisation to act on behalf of individuals or legal entities. Banks must identify parties who perform transactions that are subject to reporting requirements in accounts for which they are neither the owner nor signatory. Relationships with shell banks are prohibited. Financial institutions must identify parties making electronic cross-border transactions exceeding ILS Transfers of ILS 1 million, or its equivalent in foreign currency, to or from must be reported. Transfers to or from a correspondent account of a financial institution of ILS 1 million, or its equivalent in foreign currency, must also be reported, unless the institution is incorporated in an OECD member country. 1 Data as at January

6 Currency transactions above ILS 50,000, or its equivalent in foreign currency, in the form of cash, traveller s cheques or bearer bills must be reported. All transactions with a high-risk country or territory exceeding ILS 5000 must also be reported. The issue of all cheques of ILS 200,000 and above must be reported. Financial institutions are required to conduct risk-based ongoing due diligence. They must record and report all transactions deemed to be unusual in view of the information in the financial institution s possession to the IMPA. Financial institutions must also record and report transactions if it is suspected that the transaction is related to terrorist property or the transaction may be related to an act of terrorism. All records of identification must be kept for a minimum of seven years. Records of reported transactions and of transactions of ILS 10,000 and above, must be kept for a period of at least seven years from the date on which the transaction was recorded. Individuals taking in excess of ILS 100,000 out of the country must declare this to the customs authorities. If a person entering is a new immigrant, the threshold is ILS 1,125,000. Numbered accounts are allowed, but are subject to normal account opening procedures. They cannot be used to hide a customer s identity from compliance or supervisory authorities. 6

7 1 Taxation Resident/non-resident A company is considered resident if it is either incorporated in or controlled and managed from. A foreign corporation managed and controlled by a new i resident or a senior returning resident (i.e. an individual who has spent ten years abroad) generally will not be classified as an i resident company for a period of ten years. Tax authorities Ministry of Finance. Tax Authority (ITA). Tax year/filing The tax year is the Gregorian calendar year. Certain companies, including subsidiaries of foreign companies, may apply for a special tax year other than the calendar year. Companies must file an annual tax return no later than five months following the end of the tax year (an extension to file may be obtained in certain circumstances). The tax authorities determine advance tax payments, with some taxpayers required to pay tax according to their monthly turnover. The filing of a consolidated return is not generally permitted in and each company in a group is required to file its own return. However, if certain conditions are satisfied, qualified industrial companies may file a consolidated tax return. Companies are required to make monthly advance payments of tax based on a fixed ratio of the company s turnover. Alternatively, a company may make ten monthly payments, based on its previous year s tax liability, starting in the second month of the tax year. The balance of any tax payable is due at the beginning of the following tax year, linked to the consumer price index, and bears interest at a rate of 4%. Corporate taxation Resident companies are subject to tax on their worldwide income with a credit granted for overseas taxes paid. Non resident companies are only liable to tax in on i-sourced income. Credit for foreign tax paid is available under a relevant tax treaty or unilaterally. (See Withholding tax section for the corporate income taxation of dividends.) The corporate income tax rate is 24%. An i company classified as a preferred enterprise is taxed depending on where its facilities are located (9% if located in Area A and 16% if located elsewhere). An i company classified as an approved or benefited enterprise is entitled to a reduced tax rate of between 0% and 25%, with the period of benefits, depending on where the company s facilities are located and whether certain conditions are satisfied. The benefits will be revoked if profits deriving from the benefited income are distributed. Qualified companies may be eligible for both reduced corporate tax rates and grants from the investment centre. There are no basic differences in the tax regime as applied to different forms of business organisations. However, partnerships are transparent for tax purposes. Various programmes are available, e.g. foreign investment incentives (approved enterprise, various tarckstracks), a holding company regime and R&D incentives. There is no surtax or alternative minimum tax. Trading or business losses may be offset against income from any source in the same year. Losses may be carried forward indefinitely to be offset against business income and business capital gains. Losses may not be carried back. 1 All tax information supplied by Deloitte Touche Tohmatsu ( and Deloitte Highlight,

8 Advance tax ruling availability The ITA is authorised by law to provide advance tax rulings on all tax matters (income tax, VAT, land betterment tax and encouragement laws). Advance tax rulings may be given either with or without an agreement with the taxpayer. Taxpayers can only make an appeal against tax rulings that were given without an agreement. After filing a request for an advance tax ruling, the taxpayer cannot withdraw the request without the approval of the Commissioner of the ITA. Generally, the ITA will be committed to its tax rulings, unless they were based on false or incomplete information. Capital gains tax The capital gains tax rate depends on the purchase date and the nature of the asset. The general capital gains tax rate for a corporation is the standard corporate tax rate. The inflationary component of the gain (accrued as from 1 January 1994) is exempt from taxation. An i resident is subject to capital gains tax in on the disposal of its assets, regardless of whether the assets are located in. Capital gains derived from the sale, exchange, transfer or other disposition of tangible and intangible capital assets located in or constituting a direct or indirect ownership interest of assets in, are treated as i-sourced income and are subject to i capital gains tax, regardless of whether the seller is a resident of for i tax purposes. Shares and other securities of i companies, or shares and other securities of non-i companies holding their main assets in, also may be treated as i assets. Persons who are not residents of for tax purposes, are exempt from capital gains tax on gains from the sale of shares traded on the Tel Aviv stock exchange and gains from the sales of shares of i companies traded on stock exchanges overseas acquired after listing, unless the gain is attributable to a permanent establishment (PE) the seller maintains in. A broad exemption from capital gains tax applies to gains derived from the sale of securities in i or i-related companies acquired on or after 1 January 2009 by all non-residents (both entities and individuals), regardless of whether the non-resident is eligible for tax treaty benefits. This exemption is subject to several restrictions. The exemption does not apply: To shares of companies whose assets consist primarily (directly or indirectly) of real estate (i.e. land or buildings); If the shares sold were purchased from a related party or by way of certain tax deferred reorganisations; If the shares were held through a PE; or When the non-resident selling entity is 25% or more controlled by i residents. Withholding tax (subject to tax treaties) There is no withholding tax on dividends paid to resident companies so long as distribution is out of corporate taxed income. Corporate income tax (currently 25%, reduced from 26.5% as from 1 January 2016) will be imposed if the recipient of the interest is a body of persons, although the rate may be reduced under a tax treaty. A 0% withholding tax applies to interest on certain bonds. Dividends paid to a non-controlling foreign resident (i.e. one that holds less than 10% of the i payer) are subject to a 25% withholding tax; otherwise, the rate is 30%. These rates may be reduced under a tax treaty or incentives regime. Withholding tax (subject to tax treaties) Payments to: Interest Dividends Royalties Other income Branch remittances Resident companies 26.5%, unless a withholding tax approval is provided None/25% 20%, unless a withholding tax approval is provided 25% NA Non-resident companies 0%/15%/25% 4%/15%/20%/25% /30% 25% 25% 15% 8

9 Treasury Management Profile 2016 Dividends distributed by a preferred enterprise are taxed at a 20% rate. Dividends distributed by an approved/benefited enterprise generally are taxed at a 15% rate if the distribution is made from profits attributable to the approved enterprise, or at a reduced rate of 4% on the alternative incentive track (Ireland Track). Tax treaties/tax information exchange agreements (TIEAs) has exchange of information relationships with 54 jurisdictions through 54 double tax treaties and no TIEAs. Thin capitalisation There are no thin capitalisation rules. Transfer pricing The transfer pricing rules, which are based on the OECD guidelines, apply to transactions between an i resident and its related non-resident. A hierarchy of transfer pricing methodologies applies, with preference given to transaction-based methods over profit-based methods. Documentation requirements mandate that the taxpayer attach a statement to the annual tax return and provide a detailed transfer pricing study at the request of the tax authorities. Advance pricing agreements may be obtained. The taxpayer generally must disclose all facts relevant for taxation, especially with respect to transactions with related parties. Anti-avoidance and disclosure The i tax authorities can challenge artificial transactions. The taxpayer generally must disclose all facts relevant for taxation, especially with respect to transactions with related parties. 9

10 Stamp duty Stamp duty was abolished altogether in 2006; however, it is still applicable to some documents signed before Real property taxes Property betterment tax is applicable to the sale of real property. The principles of the property betterment tax are similar to those of the capital gains tax. The betterment is calculated from the date of purchase until the date of sale, and the amount of betterment is subject to the corporate tax rate at the date of sale. Furthermore, in certain circumstances (especially when real property is sold), the municipal authorities may impose a betterment levy at the rate of 50% on the betterment that the real property has gained as a result of the local municipal authorities actions. Any betterment levy paid may be deducted from the betterment subject to property betterment tax. The purchaser of real property is subject to purchase tax (acquisition tax) of 6%. When the asset purchased is a residential apartment, the purchaser is subject to purchase tax at progressive rates ranging from 0% to 10%. Cash pooling has no specific tax rules for cash pooling arrangements. Sales taxes/vat (incl. financial services) VAT is levied on the supply of goods and performance of services taking place in at a rate of 17%. Generally, all companies must register for VAT. A non resident who has a business in must nominate a local representative for VAT purposes within 30 days of initiating activities in. Non-profit organisations pay an equivalent tax at the rate of 7.5% based on their payroll. Financial transactions/banking services tax Financial institutions are not liable to VAT; instead they pay a salary tax at 17% of the salaries paid. Other taxes A purchase tax (also applicable to individuals) is levied on certain imports or local industrial production and is collected from local manufacturers 15 days after the end of the month in which the goods are sold. Importers are required to submit the collected tax when the goods are released from customs. Payroll and social security taxes Payroll tax is levied only on non-profit organisations (at a rate of 7.5% of wages) and financial institutions (at a rate of 17% of wages). It is in lieu of VAT on their services. The maximum monthly salary liable to social security and health taxes is ILS 43,240. Employers pay social security tax at the rate of 7.25% up to the maximum salary (3.45% if the employee earns less than 60% of the national average wage). Some employers pay part or all of employees compulsory contributions to the national insurance scheme. Contributions may be offset for corporate tax purposes. Certain items are subject to a 0% rate, including exported goods, intangible goods and the provision of certain services to non-residents (i.e. tourism services), the transport of cargo to and from i, the sale of goods and services to the Eilat free trade zone and the sale of fresh fruit and vegetables. Financial institutions, including banks and insurance companies, which are VAT exempt, pay an equivalent profit tax at the rate of 18% based on their payroll and profits. 10

11 Banking Overview There are 16 commercial banks and one non-bank institution operating in. Four foreign banks (Barclays Bank, Citibank, HSBC and the State Bank of India) have branches in and 11 foreign banks have representative offices. s five leading banks account for approximately 95.3% of the banking sector s total assets. Bank Hapoalim and Bank Leumi le- dominate the sector, controlling approximately 30% and 28% of total assets respectively. In December 2015, as part of a drive to encourage competition in the banking sector, a government committee unveiled plans to force the country s two largest banks to sell their credit card businesses. Given the limited size of the domestic market, many of s banks have expanded overseas. Bank Leumi Le- and Bank Hapoalim, for example, have a presence in key markets such as the Switzerland, the UK and the USA. s small domestic banks play only a marginal role in the commercial banking market. Major banks Bank Total assets (USD millions) 30 September 2016 Bank Hapoalim 305,300 Bank Leumi Le- 114,900 Mizrahi-Tefahot Bank 58,585 Discount Bank 55,474 First International Bank of 32,831 Source: January

12 Payment Instruments Payment statistics Millions of transactions % change Traffic (ILS billions) / % change 2014/2013 Cheques Direct debits Low value transfers* ,596 3, Payment cards 989 1, Total 1,446 1, *Direct credits processed by the Masav and BCH systems. Source: Bank of Financial statements, February Cash Cash remains an important payment medium in, particularly for low value retail transactions. Credit transfers Credit transfers in can be paper based or automated. High-value (ILS 1 million or above) and urgent electronic credit transfers are cleared and settled via Zahav, the national RTGS system, on a same day basis. Low-value, non-urgent and high-volume electronic credit transfers are processed via Masav, s ACH system. Final settlement is via Zahav on a same-day basis. Low-value credit transfers include payroll, supplier and third-party payments. Paper-based credit transfers are processed via the BCH. Funds are available to the beneficiary on a next-day basis. Paper-based credit transfers are popular among consumers and small businesses. Standing order facilities are available and widely used. Direct debits Direct debits are available in for low-value recurring payments such as utility bills. All direct debits are automated and cleared by Masav. Final settlement is via Zahav on a same-day basis. Cheques The cheque is a common cashless payment instrument for both retail and commercial payments. However, cheque use is in decline due to an increasing preference for electronic payments for both high-value and low-value transactions. Cheques are truncated into electronic items before being cleared via the BCH. Final settlement is via Zahav. Funds are available to the beneficiary on a next day basis. Card payments The use of payment cards in is becoming increasingly popular. There were approximately 7.5 million credit cards and 6.4 million debit cards in circulation at the end of Visa and MasterCard are the principal credit card brands issued in. In 2015, the Bank of announced plans to implement the EMV standard on card issuance. Approximately two-thirds of all debit cards issued are conventional debit cards; the remainder are deferreddebit cards. Deferred-debit card accounts are debited by an allocated monthly amount, as apposed to being immediately debited under the conventional debit card scheme. In 2015, the Bank of announced measures to expand the use of debit cards. Under the new measures, banks are required to offer debit cards to both existing and new current account holders. Deferred debit card holders will also be able to receive a debit card without any additional card fees. 12

13 Each bank in establishes its own individual clearing and settlement arrangements with the card associations. There were 7242 ATMs and an estimated 123,928 POS terminals in at the end of Automatic Banking Services (ABS, or Shva, as it is also known), operates the country s national ATM and POS communication networks. The ABS network processes transactions from both domestic and international payment cards. All banks participate in the ABS network. Electronic money schemes are available in the form of reloadable pre-paid cards. There are an estimated 546,000 such cards in circulation. In 2015, the Bank of announced measures to expand the use of debit cards. Under the new measures, banks are required to offer debit cards to both existing and new current account holders. 13

14 Payment Systems Type Zahav, s national real time gross settlement (RTGS) system, is operated by the Bank of. Masav, s automated clearing house, is a multilateral net settlement system managed by the Banking Clearing Center (BCC). The BCC is owned by s five major banks. The BCH (Banks Clearing House), a multilateral net settlement system for paper based payments, is managed by the Clearing House Committee. In February 2016, an Electronic Check Clearing Law was passed. The law eliminates the need to physically exchange cheques (cheques will be truncated into electronic items at the banks in which they are deposited), which will enable customers to deposit cheques via mobile phone. (Currently, cheques can only be deposited via a mobile device if they are drawn on the same bank.) All cheques will be cleared electronically by banks by February Participants Zahav has18 direct participants and three non-direct participants. Masav has 26,109 participants. All organisations that are entitled to send payment instuctions to Masav are entitled to be participants. The BCH has 35 participants. Transaction types processed Zahav processes high-value (ILS 1 million or above) and urgent credit transfers. In addition, Zahav effects the final settlement of participants net balances originating from the ACH and BCH. Masav processes all low-value (below ILS 1 million) electronic credit transfers and direct debits. The BCH processes all paper-based instruments, i.e. cheques and paper based credit and debit transfers (standing orders). Operating hours Zahav operates from 07:45 to 18:30 IST ( Standard Time), Sunday to Thursday, and from 07:45 to 14:00 IST, Friday. Masav operates 24 hours a day, seven days a week. The BCH operates from 07:45 to 18:30 IST, Sunday to Thursday, and from 07:45 to14:00 IST, Friday. Clearing cycle details Zahav Zahav settles transactions in real time and with immediate finality. Payment instructions are submitted using SWIFT messasges. 18:30 IST (14:00 on Friday): cut-off time for customer and interbank payments. Settlement takes place across the participant banks correspondent accounts held at the Bank of. Masav 10:00 IST: Masav processes all electronic credit transfers and direct debits on a same-day basis. 18:30 IST (14:00 on Friday): Masav processes all electronic credit transfers and direct debits on a next day basis. 10:00 18:30 IST (14:00 on Friday): final settlement takes place across participants accounts at the Bank of via Zahav on an end of day basis. BCH 18:30 IST: cheques and paper-based credits are truncated into electronic items before being processed by the BCH. Final settlement takes place across participants accounts held at the Bank of via Zahav on an end-of-day basis. The Bank of enters the results into the participants accounts from 09:30 IST the following day. 14

15 Treasury Management Profile 2016 The Electronic Check Clearing Law eliminates the need to physically exchange cheques, enabling customers to deposit cheques via mobile phone. Currency centre holidays , 13 Mar, 10, 11, 17 Apr, 2, 31 May, 1 Aug, 20 22, 29, 30 Sep, 5, 12 Oct , 2, 30, 31 Mar, 6, 19, 20 Apr, 20 May, 22 Jul, 9 11, 18, 19, 24 Sep, 1 Oct Source: 15

16 Cash Management Domestic Notional pooling Notional pooling is permitted between resident and non-resident companies. Cash concentration Cash concentration is permitted between resident and non-resident companies. One or more legal entities may be included. Cross-border sweeping is possible, but may be subject to income tax deductions. All major domestic and international banks offer cash concentration services. Collections Several banks in offer cash collection and account receivables services to corporate clients. Cross-border Cross-border payments are routed via SWIFT and settled through accounts held with correspondent banks abroad. Lifting fees Percentage-based fees are applied on funds transfers between resident and non-resident accounts. Short-term investments Interest can be earned on resident and non-resident savings accounts and time deposits. Short-term deposits are available in ILS or major foreign currencies, with maturities of one day to one year. Interest is paid at maturity, or can be paid periodically after one, two, three or six months for short-term deposits with maturities of one year. Treasury bills (MAKAMs) are popular with commercial banks, money market funds, insurance companies and provident funds. MAKAMs are issued directly via auction by the Bank of with maturities of less that one year. MAKAMs are traded via the Tel Aviv Stock Exchange. The minimum investment amount is ILS 1 million. Custody and securities settlement 1 Depository Tel Aviv Stock Exchange Clearing House Ltd (TASECH). The TASECH, the Bank of and s four largest banks act as nominee companies for securities. The nominee companies are subsidiaries of these banks and hold the securities in their safe-deposit facilities. The Bank of serves as the central depository for T-bills. The Ministry of Finance serves as the central depository for government bonds. Settlement T+0 for equities. T+2 for equities non-resident investors. T+1 for bonds and T bills. 1 Data as at February

17 Electronic Banking Electronic banking is available in and offered by the country s leading banks. There is no bank-independent electronic banking standard; each bank offers its own proprietary system for corporate banking purposes. Electronic banking services include balance and transaction reporting and payment initiation. Internet banking is offered by s leading commercial banks and popular among both retail users and small businesses. Services include balance and transaction reporting, as well as payment initiation. The Bank of has issued guidelines for opening online bank accounts. Accounts opened online are limited to a maximum balance of ILS 300,000. Bank transfers are limited to ILS 50,000 and individual withdrawals and deposits are limited to ILS 10,000 per transaction. Transactions in excess of this require that the account holder come to a branch. The new directive requires i residents to make applications by video interview. has an estimated internet penetration rate of 74.7%. Mobile banking is offered by the country s leading commercial banks. Account holders are able to access account information such as balance and transaction information via SMS messages. On 1 January 2016, Bank Leumi Le- launched Digital Bank, s first digital mobile bank. The bank will enable customers to manage their banking operations entirely through their mobile phone. Accounts opened online are limited to a maximum balance of ILS 300,000. Bank transfers are limited to ILS 50,000 and individual withdrawals and deposits to ILS 10,000 per transaction. 17

18 Trade Finance Trading partners Import USA 11.8%, China 8.3%, Switzerland 7.2%, Germany 6.4%, Belgium 5.3%. Export USA 26.9%, Hong Kong 8.9%, UK 5.8%, Belgium 4.8%, China 4%, Turkey 4%. Source: The World Factbook Washington, DC: Central Intelligence Agency, 2013 ( Imports Documents In order to import goods into, a customs declaration, commercial invoice (including a full description of the imported goods), bill of lading, packing list and certificate of origin are required. Licences Licences are required for importing agricultural products. Taxes/tariffs and other fees enjoys free trade arrangements with the USA, the EU and a number of other countries. Customs duties are applicable on imports from all areas. Prohibited imports A negative list (of products that may not be imported) is in operation. It is prohibited to import certain commodities into, in order to protect fauna and flora, and for national security reasons. Exports Documents In order to export goods from, a customs declaration, commercial invoice, bill of lading, packing list and certificate of origin are required. Licences Licences are not required for the majority of exports. Licences are required to export oil, chemicals and specific military equipment. Taxes/tariffs and other fees No taxes are charged on exports from. Prohibited exports A negative list (of products that may not be exported) is in operation. Financing imports and exports Imports There are no financing requirements for imports. Exports There are no financing requirements for exports. 18

19 Useful Contacts Bank of Leading banks: Bank Leumi Le- english.leumi.co.il Bank Hapoalim First International Bank of Discount Bank Mizrahi-Tefahot Group Ministry of Finance Ministry of Economy Ministry of Industry, Trade and Labour Federation of i Chambers of Commerce Invest in Investment Promotion Centre Tel Aviv Stock Exchange Automatic Banking Services Ltd mof.gov.il HSBC contact details HSBC Commercial Banking HSBC Global Banking and Markets This document is produced by HSBC Bank plc and members of the HSBC Group, together with their third-party contributor. It is not intended as an offer or solicitation for business to anyone in any jurisdiction. The information contained in this document is of a general nature only. It is not meant to be comprehensive and does not constitute financial, legal, tax or other professional advice. You should not act upon the information contained in this document without obtaining your own independent professional advice. The views and opinions expressed by the third-party contributor are their own and not necessarily those of HSBC. The information contained in this document has not been independently verified by HSBC. This document contains information relating to third parties. The information does not constitute any form of endorsement by these third parties of the products and/or services provided by HSBC or any form of cooperation between HSBC and the respective third parties. Under no circumstances will HSBC or the third-party contributor be liable for (i) the accuracy or sufficiency of this document or of any information, statement, assumption or projection contained in this document or any other written or oral information provided in connection with the same, or (ii) any loss or damage (whether direct, indirect, consequential or other) arising out of reliance upon this document or any opinion or statement made in this document. All efforts have been made to ensure that the information contained is current at the first date of publication. HSBC and the third-party contributor does not undertake, and is under no obligation, to provide any additional information, to update this document, to correct any inaccuracies or to remedy any errors or omissions. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of HSBC and the third-party contributor. Any products or services to be provided by HSBC in connection with the information contained in this document shall be subject to the terms of separate legally binding documentation. 19