🇵🇸 Tax Overview — Palestine

Limited Liability Company (LLC)

The Palestinian Authority levies a 15% corporate income tax on taxable profits for companies registered in the West Bank. VAT applies at 16% (aligned with the Israeli VAT rate under the Paris Protocol economic framework). Small businesses with revenue below certain thresholds may qualify for simplified tax procedures. Withholding tax applies on payments to non-residents. The tax administration is functional in PA-controlled areas (Area A and parts of Area B). Gaza operates under different fiscal conditions due to the political situation.