Finance Minister Moshe Kahlon in the framework of the working visit to USA met with his American counterpart Steven by Mucinum and turned to him with a request to exert pressure on the Palestinian authority to combat money laundering and the financing of terror. Mnuchin promised to consider the matter, reminding that the current US administration strongly supported Israel.
Moshe Kahlon, and Steven Mnuchin also discussed the planned tax reform in the United States, part of which will be a reduced rate of tax on profits of companies, reform of the sphere of high technologies, which conducts in Israel, Moshe Kahlon, and the work of the American centers of research and development in Israel.
«The Israeli economy is closely tied to the US economy – said Moshe Kahlon. We are closely monitoring the preparations for the tax reform in the United States to calculate its possible impact on the Israeli economy and are willing to make the necessary adjustments. The Alliance of Israel and USA is strong and unbreakable, and we will continue to seek and implement new opportunities for mutually beneficial economic cooperation.»
Following the talks, it was decided to establish a working group to examine the economic impact of the updates of the Convention on avoidance of double taxation. The amendments should regulate income tax rates and tax incentives for investors in both countries, to remove obstacles to investment and improve the investment climate in Israel.
Moshe Kahlon, and Steven Mnuchin agreed to meet again in Israel, the visit of the Minister of Finance of the USA planned for September.