Income Tax Law number 8 for the year 2011 (and its amendments) is the applicable Law in Palestine. According to this Law ‘all realised incomes in Palestine from any source for any person are taxable unless there is a clear tax exemption in the Income Tax Law’. The tax is imposed uniformly on all total taxable income sources (calculated on the accrual basis) in accordance with the provisions of the Income Tax Law.
A rate of 15% is levied on the taxable income of any legal entity. However, telecommunication companies and other companies that operate under a franchise or a monopoly in the Palestinian market are subject to an income tax rate of 20%.