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- Employee Income Tax In Brazil
- Employee Social Security In Brazil
- Deductible Expenses In Brazil
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- Value Added Tax (VAT) In Brazil
- Withholding Tax In Brazil
- Terminating Employee In Brazil
- Statutory Employee Benefits In Brazil
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BASIC COUNTRY FACTS
Palestine
Ramallah East Jerusalem
- Arabic
5.052 million
U.S. dollar Israeli shekel Jordanian dinar
.ps
+970
U.S. dollar Israeli shekel Jordanian dinar
STATUTORY LABOR REQUIREMENTS
Probation Period
- The work contract may start with a probation period, the duration of which is three months, and it may not be extended more than once for the same period and by the same employer
Annual Leave
- Employees are entitled to a minimum of 14 days for the first 5 years of employment; minimum of 21 days thereafter.
Public Holidays
- New Year's Day (1st January)
- Prophet's Ascension
- Labor Day (1st May)
- Eid al-Adha
- Islamic New Year
- Prophet's Birthday
- Independence Day (15th November)
- Christmas Day (25th December)
Maternity Leave
- The working woman who had spent a period of one hundred and eighty days at work prior to each delivery, she shall have the right to a paid maternity leave for a period of ten weeks, including at least six weeks after the delivery.
Paternity Leave
- There is no paternity leave
Sick Leave
- Based upon a report from the Medical Committee, the worker shall be entitled to a fourteen days paid sick leave each year.
- The worker is also entitled to another fourteen days’ sick leave, where he/she will be paid half of his/her wage.
Work Hours
- The actual working hours shall be forty-five hours per one week.
- The daily working hours shall be reduced by at least one hour in all hazardous or health damaging occupations, in addition to nightly jobs.
Overtime
- Employees must be paid 150% of salary for overtime
Notice Period
- A contract can be terminated with one month’s notice period
Severance
- With respect to the regulation of severance pay, Article (45) under the Palestinian Labor Law provides that the severance pay will be counted on the basis of one month for each year the worker spends at work, on condition that the worker has spent more than one year at the workplace.
INCOME TAX
- Income Tax Law number 8 for the year 2011 (and its amendments) is the applicable Law in Palestine.
- According to this Law ‘all realized incomes in Palestine from any source for any person are taxable unless there is a clear tax exemption in the Income Tax Law’.
- Employees who are working in Palestine are subject to tax on their wages, salaries, and benefits according to the following yearly brackets and rates:
- From 1 to 75,000 Israeli shekels (ILS): 5%
- From ILS 75,001 to ILS 150,000: 10%
- From ILS 150,001 and above: 15%
|
Income Tax Rate |
|
|
From 1 to 75,000 Israeli shekels (ILS) |
5% |
|
From ILS 75,001 to ILS 150,000 |
10% |
|
From ILS 150,001 and above |
15% |
DEDUCTIBLE EXPENSES
There are exemptions for residents, such as ILS 36,000 per year for being a resident, and other exemptions for transportation, for purchasing a house, and more as listed below:
-
- Amount paid for transportation or 10% of total annual salary, whichever is lower for the employees of the private sector.
- The contributions of employees to saving and retirement funds, health insurance, social security, or any other funds approved by the Minister.
- A one-time exemption of ILS 30,000 per year for building a house or an exemption from the amount of actual interest paid on a loan from a bank or lending or housing institution that has been spent on buying or building a house with a maximum of ILS 4,000 annually for a period not exceeding ten years.
- University exemption of ILS 6,000 per year per student for paying one’s tuition fees, one’s spouse’s tuition fees, and one’s children’s tuition fees at the university or community college.
- The exemption applies to a maximum of two students in each year.
|
Deductible Expenses |
|
IMMIGRATION
- Individuals of all nationalities must apply for working permits if they want to work in Palestine.
- Work permits are issued by the Ministry of Interior.
- An applicant may not begin working in Palestine before obtaining a work permit.
- Work permits may not be transferred from one employer to another; therefore, if an employee changes employers, the previous work permit is canceled, and the worker must apply for a new permit.
- Foreign investors may engage in almost any type of economic activity.
- The Palestinian Authority does not limit foreigners’ investments, except for certain sectors, including energy, manufacturing of firearms, oil and gas, which require prior approval.
- In addition, foreign ownership of a public shareholding company may not exceed 49%.
- Foreign investment for the establishment of a new company requires prior registration and authorization from the Palestinian Ministry of National Economy.
- To register and obtain authorization, the articles of incorporation, bylaws and board of directors’ authorization must be filed, and a resident representative must be appointed.
VALUE ADDED TAX
- The VAT rate in Palestine is 16% on the deals that are subject to VAT.
|
VAT |
|
|
Standard Rate |
16% |
WITHHOLDING TAX
Dividends
- A 10% withholding tax is levied on dividends paid to a resident or a nonresident, unless the rate is reduced or an exemption applies under an applicable tax treaty
- The withholding tax was suspended from 2015-2017 and in practice, is not applied in 2018 and subsequent years, although no official guidance has been issued on the status
Interest
- The Palestinian Territories do not levy withholding tax on interest
Royalties
- A 10% withholding tax is levied on royalties paid to a nonresident, unless the rate is reduced or an exemption applies under a tax treaty
Fees for Technical Services
- Payments made for services provided by nonresidents are subject to a 10% withholding tax, unless the rate is reduced or an exemption applies under an applicable tax treaty
|
Type of Payment |
Residents |
Nonresidents |
||
|
Company |
Individual |
Company |
Individual |
|
|
Dividends |
10% |
10% |
10% |
10% |
|
Interest |
0% |
0% |
0% |
0% |
|
Royalties |
0% |
0% |
10% |
10% |
|
Technical Service Fee |
0% |
0% |
10% |
10% |
TERMINATION
- The employer may terminate the work contract for technical reasons or due to a loss, which made it necessary to reduce the number of workers, in such incident the worker shall maintain his/her right to be reimbursed for the notice and for the end of service bonus, provided that the Ministry is notified of such actions.
- The worker shall have the right leave the work after the notifying the employer, while keeping his/ her legal rights, including the end of service bonus, in addition to any other rights he/she may be entitled to in any of the following cases:
-
- Using him/her in order to perform a work, which substantially differs in type or grade from the work, which was agreed upon under the work contract, unless necessity so requires and for a temporary period and in order to prevent the occurrence of an accident or in the event of force majeure.
- Being employed in a manner, which requires him/her to change his/her place of residence.
- Proving through medical report issued by the Medical Committee that continuing working in the same type work poses a danger to his/her life.
- Being assaulted slandered by the employer or his/her representative during or due to the work.
- The failure of the employer to fulfil his/her obligations towards the worker despite the workers written demands to do so.
STATUTORY BENEFITS
- These are mandatory benefits as postulated by law
- These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Maternity Leave |
|
Sick Leave |
|
Overtime Pay |
|
Notice Period |
|
Severance Pay |
|
Social Security Benefits |
PAYMENTS AND INVOICING
- 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.
- 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.
- 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.
