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The middle-eastern country became the 91^st jurisdiction to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters yesterday, which enables the exchange of information, tax examinations and assistance in tax collection between signatories.

OECD secretary general Angel Gurría said: “Israel has recognised the importance of improving tax transparency and has implemented the necessary reforms in recent years to ensure that its legal and regulatory framework is up to the task.”

The convention will be seen as a key instrument in the implementation of new standards for the automatic exchange of financial information between countries and the base erosion and profit shifting reforms (BEPS) recently finalised by the OECD and endorsed by the G20 at their summit in Ankara, Turkey at the start of November.

Israel follows Uganda, the Seychelles, Mauritius and El Salvador, who have all signed up to the convention this year.