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

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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

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

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

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