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Actual start of the tax amendments

2014-03-18

The Palestinian Minister of Finance; Dr. Shukri Bishara revealed a trend to reduce taxes, noting that some of these decisions have been taken recently. Bishara said: “part of the procedures had been implemented and other steps and decisions had been taken. We are seriously thinking of reducing taxes especially the corporate income taxes from 20% to 15%; the tax percentage that was effective earlier in 2011. However, the decision was taken, but the timing is not yet determined. We have taken the decision with deliberation, whereby, will be implemented by the end of the current year after ensuring that the corrective actions have been taken”.  Bishara cleared out during a meeting that aimed to present “ the general revenues strategies of the years 2014-2016” that the decisions included reducing the income taxes on microfinance programs from 20% to 10%, eliminating the 5% taxes on interest on individuals deposits in banks, eliminating the income tax on capital gains, in addition to adopting 10% taxes on bonds and stocks dividends distributions deducted from the source along with modifying the investment promotion law. 

 


 

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