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Israel Tax Authority issues directive that enables Palestinians living in East Jerusalem and Israel by virtue of family unification processes to compete in the Israeli labour market and benefit from tax credits

Approximately 10,000 Palestinians are currently living in Israel and East Jerusalem pursuant to renewable stay permits or B/1 visas, as part of family unification processes. They cannot become permanent residents because the Citizenship and Entry into Israel Law (Temporary Order) prohibits granting Israeli status to those defined as “residents of the Area” (i.e., residents of the OPT).

People belonging to this category have, until recently, been classified by the authorities as "foreign workers" – a classification that severely harmed their ability to earn a living. This classification was changed following HaMoked’s petition: on December 13, 2018, the Israel Tax Authority issued a directive which cancels the foreign worker levy that was imposed on their employers, and they themselves are now entitled to tax credits, similarly to Israeli residents, in accordance with the general regulations of the tax code. These changes are anticipated to lead to a substantial improvement in their employment conditions, and open the local job market to them.

Therefore, on March 6, 2019, the petition was deleted at the parties’ mutual request. (02) 627 1698   (02) 627 6317

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