Jordan – customs and sales tax changes

Jordan – customs and sales tax changes

Among recent indirect tax changes, Jordan has imposed a new customs charge on exempt imported goods. Jordan also eased sales taxes due on cash transfers to foreign individuals and on the sale of financing companies.

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Customs duties on exempt imported goods

Under a new customs regulation1, custom duty fees are levied on all exempt imported goods at the rate of 1 percent of the goods’ value. The minimum fee is 25 Jordanian dinars (JOD) and the maximum fee is JOD2,000. The custom duty fees are collected on the Customs Declaration and credited to the Public Treasury.

The regulation does not apply to (among others):

  • Jordanian armed forces and security services
  • ministries and government departments
  • public official establishments and public municipal establishments and shared services councils
  • embassies and diplomatic bodies in Jordan.

Money transfers to foreign individuals – sales tax cancelled

On 16 March 2014, Jordan’s Council of Ministers decided to cancel the sales tax on money transfers to individuals outside of Jordan, starting on 19 May 2012.

Sales of financing companies – sales tax reduced

The Council of Ministers decided on 30 March 2014 to reduce the general sales tax rate on sales of the financing companies to 10 percent (from 16 percent) for 2009 fiscal years to ensure the tax burden is equivalent with that borne by banks and financial companies. For 2010 – 2013 fiscal years and later years, the general sales tax rate on such sales is 8 percent. No legal or civil compensation is calculated on this general sales tax.

Footnotes

1Regulation Number 47 in Year 2014, Custom Duties Fee Regulation Imposed on Imported Exempted Goods Under the Articles 61 and 251 from the Customs Law Number 20 for the Year 1998.

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