Regulatory Alerts2017-01-01
Circular No. 77 of 2017: Value Added Tax on Employee Salaries
The Palestine Monetary Authority and the Council of Ministers of Palestine issued Circular No. 2017/77 to transmit Cabinet Decision No. 17/146/2017, which formally rejects the request by non-banking lending institutions to be exempted from Value Added Tax on employee salaries. The decision mandates that all relevant authorities implement the ruling effective from its issuance date on April 3, 2017, thereby confirming that VAT applies to compensation costs within the specialized lending sector. Financial stability officials are directed to ensure compliance with this tax obligation across all operating institutions in Palestine.
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