Law on the Encouragement of Investment
The Palestinian Authority has created a framework of economic
laws to encourage and support foreign and local investment in Palestine.
The implementing agency is the Palestinian
Investment Promotion Agency (PIPA). These laws were drafted to help protect potential
investors from undue risk and to promote the profitability of their
investment. The Law on the Encouragement of Investment in Palestine Law No. [1] of 1998; and amendments "Presidential Decree No. ( 2 ) for the year 2011" encourages capital
investment in all sectors of the Palestinian economy by both local
and foreign corporations registered to do business in Palestine.
The Palestinian Authority hopes that increased capital investment
growth will generate jobs, and help to develop an export-oriented
manufacturing base.
Our incentives policy is dictated by the Law on Encouragement
of Investment in Palestine, 1998 and amendments. In essence it is as follows:
1. The fixed assets of an enterprise receive various exemptions
on customs duties for a defined period. This law also applies to
spare parts (meeting certain criteria), fixed assets for developing
or enlarging an already existing enterprise, and price increases
due to changes in costs associated with price hikes in the exporting
country, or increases in shipping or transformation costs.
2. Exemptions on income taxes are also granted to investments of greater than US$250,000 for new projects and US$ 100,000 for development projects, for a certain years related to the size of investment, commencing from the beginning of the first fiscal year following the year of commencement of production or from start of its actual activities and will receive an additional term during a project's trial period.
3. Additional exemptions and incentives may be granted to enterprises
engaged in export activities.
4. Special incentives and exemptions apply to investments in hospitals
and hotels.
For more detail on this law, please contact
us, we will be happy
to assist you.
