Israel and Kazakhstan have signed a convention intended to prevent double taxation. The agreement was signed at the tenth meeting of the countries’ joint economic commission in Jerusalem on 2 November.
The convention is intended to address situations in which the same income may be subject to tax in both countries. Signing it is a significant step, but it does not by itself establish when taxpayers will be able to use its provisions.
Kazakhstan’s delegation was led by Deputy Prime Minister Zhaslan Madiyev, who is also the country’s minister for artificial intelligence and digital development. The commission was co-chaired by Madiyev and Ze’ev Elkin, a minister in Israel’s finance ministry. Elkin said the agreement followed more than a decade of negotiations.
What the draft convention sets out
Before the visit, Kazakhstan’s government approved a draft convention on income taxes and authorised Madiyev to sign it. Its resolution, dated 28 October, allowed changes that were not fundamental. The draft gives an indication of the proposed arrangements, but it is not proof of the exact text ultimately signed.
The draft covers residents of either or both countries. It lists Kazakhstan’s corporate and individual income taxes and Israel’s income and company taxes among the taxes concerned. It also addresses tax on income from transfers of property under Israeli real-estate taxation law.
One proposed way of relieving double taxation is a tax credit. Under the draft, a resident receiving income that may be taxed in the other country could generally receive credit for tax paid there. The credit would be limited to the portion of the home-country income tax attributable to that income.
The draft also proposes limits on source-country tax on some dividends. One provision sets a five per cent ceiling where the beneficial owner is a qualifying company resident in the other country and directly holding at least a quarter of the paying company’s capital for a 365-day period including the payment date. The draft excludes partnerships and real-estate investment funds from that particular company rate and contains other rules and exceptions.
These are provisions of the earlier draft, not confirmed terms of the signed document. Tax treatment would depend on the final text, the type of income and whether the conditions for a particular benefit are met. The convention is intended to address double taxation, not to make all cross-border income tax-free. The draft also includes provisions intended to prevent tax avoidance and evasion.
The draft says the convention would enter into force after the two countries complete their domestic procedures and the last written notification is received through diplomatic channels. For tax withheld at source, the draft applies to income paid on or after 1 January of the calendar year following entry into force. For other taxes, it applies to tax periods beginning on or after that date. The signing alone does not confirm those steps have been completed.
Wider cooperation agenda
The commission covered investment and trade alongside water resources, healthcare, energy, industry, artificial intelligence, cybersecurity, space and education. The breadth of the agenda reflects several separate areas of discussion rather than a single project.
Water management received particular attention. The talks considered technologies for monitoring water systems, reducing losses and modernising infrastructure, as well as the possibility of joint projects. Healthcare discussions included investment, medical infrastructure and the exchange of professional expertise.
On digital issues, the delegations explored joint research, new technological products and the protection of critical information infrastructure. A separate declaration of intent on peaceful space exploration was signed during the commission. It outlines possible cooperation on Earth observation, satellite data, technology demonstrations and education, rather than announcing a completed joint project.
A separate business forum in Tel Aviv produced seven commercial documents. The areas covered included healthcare, digital technology, information security, water supply and trade. Ideas discussed ranged from a medical cluster in Kazakhstan to technology for extracting drinking water from the air; these are potential initiatives, not completed facilities.
During the visit, Madiyev also met Israeli President Isaac Herzog. Their discussions included artificial intelligence, water technologies, critical minerals and tourism. The two sides agreed to work on developing direct air connections and discussed plans for visa-free travel; neither point amounts to an announced start date for a new service or travel regime.
The relationship predates this week’s signing. The two countries established diplomatic relations in 1992, and Herzog visited Kazakhstan in April 2026. The new convention and the commercial documents add to that relationship, while their practical effects will depend on the further steps taken under each arrangement.
