The taxable period is the calendar year starting 1 January and ending 31 December.
Tax returns must be submitted by 30 April of the next year. Manual tax returns should be submitted to the Income Tax Department in person.
Assessing the tax
The tax shall be assessed as follows:
- Self-assessment by the taxpayer by submitting the tax declaration and its attachments.
- Administrative assessment by the assessor if the taxpayer did not submit the tax declaration or if it is totally or partially rejected.
- Assessment by agreement between the taxpayer and the Department on the amount of tax liability if the assessor does not accept the self-assessment or the taxpayer objects to the administrative assessment.
- Assessment by the Court.
Payment of tax
Payments must be made in advance as either:
- One single payment (entitling the taxpayer to a discount).
- Equal instalments:
- First instalment: End of quarter one.
- Second instalment: End of quarter two.
- Third instalment: End of quarter three.
- Fourth instalment: End of quarter four.
Any remaining tax liability will be paid along with the tax return.
For payroll tax and WHT, payments must be paid through the employer on a monthly basis.
Tax audit process
After submitting the tax returns, the income tax department normally verifies the return and may require adjustments and hold meetings with the taxpayer before its final settlement is reached and signed by both parties.
Statute of limitations
The statute of limitations is four years.
Topics of focus for tax authorities
Topics of focus for the Palestinian Tax Authorities include declaration of the total taxable income from all sources.