WASHINGTON (Oct. 7)
The United States Treasury Department today announced agreement with Israel on a draft income tax convention, which would grant American businessmen who invest in Israel tax credits amounting to seven percent of their capital investment. The convention is designed to promote trade and investment, and to eliminate double taxation.
American businessmen must invest in qualified Israeli enterprises to receive the tax credit. The draft contains a provision under which both nations could make adjustments in liability to avoid double taxation. This is the first time such a provision was written into a U. S. tax convention, the Treasury Department said.
The draft also contains provisions permitting transfer of technical information and related services in exchange for shares in a corporation, without creating a tax liability.