Middle East · Tax guide

Palestine

Palestine taxes company profits at 15% and charges VAT at 16%, closely linked to the Israeli VAT system under the Paris Protocol. The Israeli shekel is the main currency, and taxes are administered by the Ministry of Finance.

Updated 1 October 2026 · 0 of 3 figures checked against official sources

Check your obligations

At a glance

Corporate income tax: 15%
VAT: 16%
Withholding on payments abroad: 10%

Corporate income tax

Companies pay 15%, with a higher rate for telecoms and other monopoly businesses. The annual return is due within four months of the year-end.

VAT

VAT is 16%. Under the Paris Protocol the rate must stay close to Israel's, and VAT on trade with Israel is cleared through special invoices. Returns are filed monthly.

Payments abroad

Payments to non-residents carry 10% withholding.

Key dates

MonthlyVAT return
Within four months of the year-endAnnual income tax return

Figures and sources

3 figures

Corporate income tax rate15%

Income Tax Law by Decree No. 8 of 2011, as amended
Under professional review
VAT rate16%

VAT regulations (customs union arrangements under the Paris Protocol)
Under professional review
Withholding on payments to non-residents10%

Income Tax Law by Decree No. 8 of 2011, as amended
Under professional review

Indicative only. This assessment is a high-level overview of tax obligations in Palestine based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Palestine (a Palestinian tax adviser) before making compliance decisions.