- Income tax brackets updated
Refreshed for 2026 — brackets, sources, MoF URL, WHT, treaties, capital gains, filing deadline, residency prose (taxsummaries.pwc.com) (pmof.ps).
PS
Palestine
Western Asia
EGP
PS · PSE · #223 · 5 cities
Nomad score
47/100
Compare
Top income tax
15.0%
Territorial system
Corporate tax
15.0%
VAT
16.0%
standard rate
Tax residency
183 days
9 tax treaties
Palestine tax profile
Data year: 2026
- Tax system
- Territorial Palestine applies Income Tax Law No. 8 of 2011 (and amendments). Taxable income is generally income realised in Palestine from any source unless the law grants a specific exemption. Foreign-source income is exempt unless it arises from the taxpayer’s funds or deposits in Palestine. The system is influenced by the 1994 Paris Protocol economic arrangements with Israel (including VAT alignment).
- Top PIT rate
- 15.0%
- Corporate tax rate
- 15.0%
- VAT
- 16.0%
- Capital gains tax
- 15.0% There is no separate capital-gains schedule; gains are taxed as ordinary income at progressive PIT rates for individuals and at the standard CIT rate for companies. Listed companies may exempt 100% of profits from trading listed stocks and bonds; private companies may exempt 25% of such profits (no deduction of related expenses on the exempt portion).
- Social security (employee)
- Rate not recorded
- Social security (employer)
- Rate not recorded
- Dividend withholding
- 0.0%
- Interest withholding
- 10.0%
- Royalty withholding
- 10.0%
- Treaty count
- 9
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| ILS 0 | and above | 15.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| ILS 0 | ILS 75,000 | 5.0% |
| ILS 75,001 | ILS 150,000 | 10.0% |
| ILS 150,001 | and above | 15.0% |
Tax flags
Territorial Exemption
Tax residency
- Days threshold
- 183 days
- Residency rules
- A Palestinian national is resident if present in Palestine at least 120 days in the year income is received (continuously or with interruptions), or if employed by the Palestinian Authority or a local authority during the year (even outside Palestine). A non-Palestinian natural person is resident after 183 days in the year income is received. Legal persons registered in Palestine with a controlled office or branch are resident.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- April 30
Sources
- PwC Worldwide Tax Summaries — Palestinian territories (accessed Oct 9, 2026) PIT brackets, CIT 15%/20% telecom, VAT 16%, WHT, residency, filing, treaties, territorial foreign income
- PwC Palestinian territories — taxes on personal income (accessed Oct 9, 2026) Income Tax Law 8/2011, progressive PIT 5/10/15%, non-resident 10% WHT
- Palestine Investment Promotion Agency — Tax (accessed Oct 9, 2026) PIT/CIT rate table, VAT 16%, dividend treatment cross-check
- Ministry of Finance and Planning — State of Palestine (accessed Oct 9, 2026) Official tax authority portal and electronic services (RMS)
Change history
-
-
- Income tax brackets updated
Refreshed for 2026 — brackets, sources, MoF URL, WHT, treaties, capital gains, filing deadline, residency prose (taxsummaries.pwc.com) (pmof.ps).
-
- Income tax brackets updated
Refreshed for 2026 — brackets, sources, MoF URL, WHT, treaties, capital gains, filing deadline, residency prose (taxsummaries.pwc.com) (pmof.ps).
-
- Income tax brackets updated
Refreshed for 2026 — brackets, sources, MoF URL, WHT, treaties, capital gains, filing deadline, residency prose (taxsummaries.pwc.com) (pmof.ps).
-
- Income tax brackets updated
Refreshed for 2026 — brackets, sources, MoF URL, WHT, treaties, capital gains, filing deadline, residency prose (taxsummaries.pwc.com) (pmof.ps).
-
- Income tax brackets updated
Refreshed for 2026 — brackets, sources, MoF URL, WHT, treaties, capital gains, filing deadline, residency prose (taxsummaries.pwc.com) (pmof.ps).
-
- Income tax brackets updated
Refreshed for 2026 — brackets, sources, MoF URL, WHT, treaties, capital gains, filing deadline, residency prose (taxsummaries.pwc.com) (pmof.ps).
-
- Income tax brackets updated
Refreshed for 2026 — brackets, sources, MoF URL, WHT, treaties, capital gains, filing deadline, residency prose (taxsummaries.pwc.com) (pmof.ps).
-
- Income tax brackets updated
Refreshed for 2026 — brackets, sources, MoF URL, WHT, treaties, capital gains, filing deadline, residency prose (taxsummaries.pwc.com) (pmof.ps).
-
- Income tax brackets updated
Refreshed for 2026 — brackets, sources, MoF URL, WHT, treaties, capital gains, filing deadline, residency prose (taxsummaries.pwc.com) (pmof.ps).