The national tax laws in Palestine are administered by tax departments with-in the Ministry of Finance. The Jordanian Income Tax Law (Law No. 25 / 1964) is applicable in the WB and the British Mandatory Income Tax Law (Law No.13 / 1947) is applicable in the GS. Both laws were subjects to Israeli military orders amendments. The tax rates have been unified in the Palestinian Territories . The corporate income tax rate is 20% of taxable income. The personal income tax is progressive with the highest tax bracket being 20%. Most accounting expenses are deductible. Allowances in general are not accepted as expenses unless they are funded or actualized. Capital gains and dividends to “residents” are tax exempt.

The registration of companies with the income tax authority and the annual follow-up is a fairly smooth process. Licensed local accountants and tax experts can do that with no problems.