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.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2017/77)
To all specialized lending institutions operating in Palestine
Date: Wednesday, April 12, 2017
Subject: Value Added Tax on Employee Salaries
Attached for your information is Cabinet Decision No. (17/146/02) M.W.R.H dated 03/04/2017 regarding Value Added Tax on employee salaries in specialized lending institutions.
Deputy Governor for Financial Stability Affairs
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922 | Tel: +970 2 2415250 | Fax: +970 2 2409922 | Ramallah - Palestine P.O. Box 452
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Gaza - Palestine P.O. Box 4026
Email: info@pma.ps | Email: info@pma.ps
www.pma.ps
Eng. Hani Al-Ak Shikha Yasha
May God protect him
Minister of Finance and Revitalization
Subject: Value Added Tax on Employee Salaries in Non-Banking Lending Institutions
Greetings,
The General Secretariat of the Council of Ministers extends its best regards and informs you of the Cabinet Decision issued during its weekly session No. (17/146) dated 03/04/2017, regarding the rejection of the request by non-banking lending institutions to be exempted from Value Added Tax on their employees' salaries.
We kindly request taking the necessary measures to implement the decision.
Accept our highest respect and appreciation,
Salah Abban
Secretary General of the Council of Ministers
State of Palestine
Prime Ministry
Council of Ministers / Gaza
State of Palestine
Attached: The aforementioned decision.
Copy: His Excellency the Prime Minister, may God protect him
Members of the committee mentioned in the decision, may God protect them
Reference/Archived
Legal Affairs / Licensing Department
State of Palestine
Council of Ministers
Cabinet Decision No. (17/146/C) M.W.R.H for the year 2017
Value Added Tax on Employee Salaries in Non-Banking Lending Institutions
Based on the authorities granted to us by law
Based on the proposals of the Public Interest Authority
And upon reviewing the amended Basic Law of 2003 and its amendments;
And upon the recommendations of the specialized technical committee to review the Value Added Tax calculated on employee salaries in non-banking lending institutions in its third meeting held on 27/12/2016;
The Council of Ministers decided in its session held in Ramallah on (03/04/2017) as follows:
Article One
Rejection of the request by non-banking lending institutions to be exempted from Value Added Tax on their employees' salaries.
Article Two
The competent authorities shall implement the provisions of this decision, each within its jurisdiction, and it shall be effective from the date of its issuance.
Issued in Ramallah on 03/04/2017.
Rami Hamdallah
Prime Minister
State of Palestine
Prime Ministry
Council of Ministers / Gaza
State of Palestine
Send Result Report
MFP
TASKalfa 3501i
Firmware Version 2N9_2000.002.114 2013.08.06
[2N7_1000.001.114] [2N4_1100.001.002] [2N4_7000.002.114]
Job No.: 092600
Total Time: 0°06'56"
Page: 003
Complete
Document: doc09260020170412124406
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2017/77)
To all specialized lending institutions operating in Palestine
Date: Wednesday, April 12, 2017
Subject: Value Added Tax on Employee Salaries
Attached for your information is Cabinet Decision No. (17/146/02) M.W.R.H dated 03/04/2017 regarding Value Added Tax on employee salaries in specialized lending institutions.
Deputy Governor
for Financial Stability Affairs
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922 | Tel: +970 2 2415250 | Fax: +970 2 2409922 | Ramallah - Palestine P.O. Box 452
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Gaza - Palestine P.O. Box 4026
Email: info@pma.ps | Email: info@pma.ps
| No. | Date and Time | Destination | Times | Type | Result | Resolution/ECM |
|---|---|---|---|---|---|---|
| 001 | 12/04/17 14:40 | ebda3 | 0°00'24" | FAX | OK | 200x100 Normal / On |
| 002 | 12/04/17 14:41 | Gaza diwan | 0°02'40" | FAX | OK | 200x100 Normal / On |
| 003 | 12/04/17 14:43 | Reef | 0°00'45" | FAX | OK | 200x100 Normal / On |
| 004 | 12/04/17 14:46 | Asalh | 0°00'46" | FAX | OK | 200x100 Normal / On |
| 005 | 12/04/17 14:47 | Acad | 0°00'45" | FAX | OK | 200x100 Normal / On |
Send Result Report
MFP
TASKalfa 3501i
Firmware Version 2N9_2000.002.114 2013.08.06
[2N7_1000.001.114] [2N4_1100.001.002] [2N4_7000.002.114]
Job No.: 092600
Total Time: 0°06'56"
Page: 003
Complete
Document: doc09260020170412124406
| No. | Date and Time | Destination | Times | Type | Result | Resolution/ECM |
|---|---|---|---|---|---|---|
| 006 | 12/04/17 14:50 | CHF-vitas | 0°00'28" | FAX | OK | 200x100 Normal / On |
| 007 | 12/04/17 14:51 | Faten | 0°01'08" | FAX | OK | 200x100 Normal / Off |
[ L7U3Z07620 ]