The Law on the Encouragement of Investment in Palestine grants qualified projects a package of income tax and custom incentives.
Qualified projects must be approved by the Palestinian Investment Promotion Agency (PIPA) and shall be granted the following incentives:
- Income tax of 5% for a period of five years commencing from the date of realising profit but not exceeding four years, whichever is earlier.
- Income tax of 10% for a period of three years commencing from the end of the first phase. Thereafter, it will be calculated based on the applicable and in effect percentages and segments.
Foreign tax credit
Palestinian Income Tax Law does not mention foreign tax credits.