Palestine

{"ftc_utility":"low","fbar_trigger_notes":"US expats residing in Palestinian territories who hold accounts at Palestinian banks such as Bank of Palestine or Arab Bank branches will trigger FBAR filing requirements if aggregate foreign account balances exceed $10,000 at any point during the calendar year. Palestinian banking infrastructure in the West Bank operates in ILS (Israeli New Shekel) and USD. Financial access in Gaza is severely constrained.","ftc_utility_reason":"Palestinian income tax rates top out at 15%, well below US federal rates. The Foreign Tax Credit offsets US tax dollar-for-dollar on taxes paid to the PA, but the low PA rates mean the FTC provides only partial shelter. FEIE is typically more advantageous for most US expats working in Palestinian territories. No US-Palestine tax treaty exists to supplement FTC planning.","presence_day_count_notes":"Entry and exit from the West Bank is controlled primarily through Israeli-administered crossings, which can complicate travel and day counts. Gaza is under blockade conditions making sustained presence and reliable travel extremely difficult. US expats in the West Bank typically enter via Jordan through the Allenby Bridge crossing. Days physically present in Palestinian-administered territory count toward the 330-day test, but disruptions, closures, and forced departures due to security conditions can break the count. Careful documentation of entry and exit stamps is strongly advised.","typical_qualifying_method":"physical_presence","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.1,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Palestinian tax residents is subject to Palestinian income tax under general income inclusion rules. No specific exemption for foreign pensions exists. Top rate is 15%. Practical enforcement is limited given the PA's administrative environment.","tax_rate":0.15,"locally_taxed":true},"social_security":{"notes":"No US-Palestine totalization or income tax treaty exists. US Social Security benefits received by Palestinian-resident US expats have no treaty exemption. In practice, PA tax administration of foreign pension and Social Security income is minimal, but no formal exemption applies under Palestinian law.","locally_taxed":false,"treaty_protection":false},"roth_distributions":{"notes":"Roth distributions represent a return of after-tax capital with no treaty framework in place. Palestinian law does not specifically address Roth-type accounts. Qualified Roth distributions that constitute a return of basis rather than income would not ordinarily generate a taxable event, but the distinction may not be administratively recognized.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"The United States and Palestine do not have a bilateral income tax treaty. US 401k and IRA distributions received by a Palestinian tax resident would be treated as foreign-source income and potentially taxable under Palestinian domestic rules. In practice, enforcement against foreign pension income for individual US expats is limited given the PA's administrative capacity, but no legal exemption exists. Top marginal rate is 15%.","tax_rate":0.15,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.15,"notes":"Capital gains in the Palestinian territories are generally taxed as ordinary income under the Palestinian Income Tax Law No. 17 of 2004. The top marginal rate is 15% for individuals.","details":{"tax_type":"Capital Gains Tax","country_name":"Palestine","country_iso_code":"PSE","source_references":["Palestinian Income Tax Law No. 17 of 2004","Palestinian Authority Ministry of Finance","PwC Worldwide Tax Summaries - Palestinian territories"],"last_verified_date":"2026-06-03","general_description":"Palestine does not have a standalone capital gains tax. Gains from asset disposals are generally treated as ordinary income and taxed under the progressive income tax schedule administered by the Palestinian Authority Ministry of Finance. Real property transfers may be subject to separate transfer taxes at the municipal or PA level.","corporate_capital_gains":{"rate":0.15,"tax_treatment":"Taxed as ordinary corporate income at the flat corporate rate of 15%."},"individual_capital_gains":{"rate":0.15,"tax_treatment":"Treated as ordinary income and taxed at the top marginal individual rate of 15% under the progressive brackets. Real property gains may also attract a separate transfer registration fee."}}}

{"notes":"Dividends paid to individuals from Palestinian-registered companies are subject to withholding tax under Palestinian Income Tax Law No. 17 of 2004. The standard withholding rate on dividends is 15%. Dividends distributed from profits already taxed at the corporate level may receive some relief in practice, but no formal dividend imputation system exists.","rates":[{"rate":0.15,"type":"withholding","notes":"Standard withholding on dividends paid to resident and non-resident individuals by Palestinian companies under Income Tax Law No. 17 of 2004."}]}