International double taxation agreements

By law, royalties distributed by ACUM are taxed payments.

An ACUM affiliate, whom residence is outside of Israel, has to pay taxes for his royalties as well.

As an ACUM affiliate, you are entitled to a free of charge service of submitting your tax coordination application to the Israeli tax authority.

In order for ACUM to wire transfer your royalties according to the international double taxation agreement between Israel and your country, carefully follow the guidelines below:

Who is entitled?

An ACUM affiliate whom residence is outside of Israel and pays his taxes within his home state and his country has a double taxation agreement with Israel. 

What should I provide?

  1. A filled Residency questionnaire (only for former Israeli resident).
  2. A filled A/114 form, signed by the tax authority of your residence.
  3. Your bank account details. Please attach a formal document from your bank for validation, including all overseas wire information (e.g. swift code, IBAN, routing number, etc.)
  4. A copy of your passport.

PLEASE NOTE! The filled and signed forms have to be sent to ACUM in their original copy by air mail only (faxed or scanned copy are not acceptable. The certificate has to be performed annually.

Instructions for filling part D:

 

 

For U.S. residents:

U.S. residents have to provide a 'Certification of U.S. Tax Residency (form 6166) from the IRS.

PLEASE NOTE! The 6166 form has to be sent to ACUM in its original copy by air mail only (faxed or scanned copy are not acceptable. The certificate has to be performed annually.

For further information of the Certificate of U.S. Tax Residency, please contact your nearest IRS office. 

How much tax will be deducted?

According to the approval given by the Israeli tax authority, ACUM's Accountant department will match the tax deduction rate and the international double taxation agreement between Israel and your country. In case of a mismatch, ACUM will return the application to the Israeli tax authority.

Please note that ACUM is not responsible for the approval or non-approval of the tax coordination and its tax rate. 

Where to send?

ACUM – Members department

P. O. Box 1704

9 Tuval St.

Ramat Gan

Zip: 5211701

ISRAEL 

When will I get the approval?

It could take up to two months for the tax certificate to arrive to ACUM from the submission date to the Israeli Tax Authority. 

When should I get the royalties?

Due to the high exchange rates and the commission fees charged by both your bank and ACUM's, we usually only wire net amounts of no less than 1,000 ILS. Upon request, we may wire lower net amount. 

What if I don't want to use that service?

In case you don't want to make this annual procedure and wish your royalties to be deducted with the full deduction rate (25%), please notify ACUM by stating that you approve a full tax deduction.

Members Department is at your disposal,

Sundays to Thursdays

8:00am-5:00pm

Tel: +972 3 6113456

Fax: +972 3 6113459

Email: Members@ACUM.org.il