Regulatory Alerts2006-01-01
Circular No. 54: Property Tax
The Palestine Monetary Authority issued Circular No. 54 to require all Palestinian banks to withhold property tax obligations from rental payments made to landlords. Banks must either secure a formal tax clearance certificate from the Property Tax Directorate before disbursing funds or deduct the applicable tax from the rent and remit it directly to the Directorate. This mandate addresses landlord non-compliance and ensures accurate tax collection on bank-leased properties.
Palestine Monetary Authority
Palestine Monetary Authority
Circular No. (54)
To all banks operating in Palestine
Date: Sunday, March 26, 2006
Subject: Property Tax
With reference to the above subject and the attached letter from the Property Tax Directorate, and given that some owners of properties leased by banks have failed to pay the financial obligations due to the Property Tax Directorate, all banks are instructed to refrain from paying any financial dues to the owners unless a tax clearance certificate is obtained from the Property Tax Directorate in due course, or by paying the rental amounts with the tax value deducted therefrom and transferring it to the Property Tax Directorate.
Bank Supervision Department Palestine Monetary Authority
Enclosure: Letter from the Property Tax Directorate Copy: Respected Property Tax Directorate
Ramallah - Al Bireh P.O. Box 452, Tel: 02 240 9920, Fax: 02 240 9922 Gaza P.O. Box 4026, Tel: 08 282 5713, Fax: 08 284 4487 Ramallah - Al Bireh P.O Box 452, Tel. 02 240 9920, Fax. 02 240 9922 Gaza P.O Box 4026, Tel. 08 282 5713, Fax. 08 284 4487 E-mail: info@pma.gov.ps www.pma-palestine.org