The agreement is intended to prevent double taxation of taxes on income, capital and trade.

(Communicated by the Foreign Ministry Spokesman)

Vice Prime Minister and Minister of Foreign Affairs Tzipi Livni and Slovenian Ambassador to Israel Mr. Iztok Jarc yesterday signed an agreement for the avoidance of double taxation between the two countries.

The agreement is intended to prevent double taxation of taxes on income, capital and trade, and by so doing to simplify investment and trade procedures between Israel and Slovenia. It is further hoped that the agreement will enable businessmen and investors to accomplish effective tax planning. The agreement, prepared by the Ministry of Finance and the Ministry of Foreign Affairs, adds an important layer to the existing agreements with Slovenia. 

Minister Livni and Ambassador Jarc both expressed their hope that the agreement will assist in promoting trade between the two countries. In 2005 mutual trade reached the record level of 100 million dollars. In 2006 trade dropped by 12% to 85.6 million dollars. Despite the drop, Israel-Slovenia trade levels are high in comparison to Israeli trade with other Eastern European countries, and it is hoped that the agreement will further increase trade.

Slovenia joined the euro-zone in January 2007, the first country among the new members of the European Union to do so. Slovenia will be appointed to the Presidency of the European Union in the second half of 2008, the first among the new members to be appointed to this position.

Another recent economic agreement between the two countries is the Mutual Support of Industrial R&D Agreement. The agreement was signed in Slovenia in July 2006 during the visit of the Chief Scientist of the Ministry of Industry, Trade and Labor. The agreement calls for the support of 3-5 projects per year.