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Palestinian News Item
Withholding tax applies to all recipients of PA salaries, including the prisoners
Official PA daily, Al-Hayat Al-Jadida  -  June 19, 2011


 
Headline: “Prisoners and their families praise [PA] government decision to raise salaries, [Minister of Prisoners’ Affairs] Karake: Withholding tax applies to every citizen who receives income from the PA”
     “A meeting was held between the Ministry of Prisoners’ Affairs and the Ministry of Finance. Several issues were clarified: The [withholding] tax applies to every citizen who receives income from PA treasury; it is within the framework of the Income Tax Act, and begins with salaries over 1,400 shekels per month. The initial rate is 5% for salaries over that amount. The tax rate is graduated, reaching at most only 10% of prisoners’ salaries. The Minister of Prisoners’ Affairs said that the prisoners in the Israeli prisons and their families are subject to the [tax] law.”

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