How do I claim a reduced dividend tax rate under a tax treaty with Israel?

To benefit from a reduced treaty withholding rate, obtain a certificate of tax residence from your home country's tax authority and submit it to the Israeli distributing company or to the Israeli Tax Authority for pre-approval. The company can then withhold at the reduced treaty rate rather than the statutory 25% or 30%. Acting in advance is important — reclaiming excess withholding after the fact is possible but involves a more complex refund process with the Israeli Tax Authority.