Israel's proposed reduction in the corporate tax rate from 26.5% to 25% was approved by the Ministerial Committee on Legislation on 6 December 2015, and given final approval by the Knesset (parliament) on 5 January 2016. The rate reduction also applies for the withholding tax on dividends, interest, royalties and capital gains, unless lower rates apply under a tax treaty. The 25% rate applies from 1 January 2016.