Palestinian territories

Corporate - Branch income

Last reviewed - 23 July 2024

Branches of foreign entities are subject to 15% income tax on their taxable income.

Deductions from income include the allocations of branches in the expenses of the main headquarters that is located outside Palestine with a percentage not exceeding 2% per year of the gross taxable income of branches in Palestine

Branches don’t pay dividends, so there is no extra tax when transferring the branch’s profits to the headquarters.