KPMG in Jordan summarizes key changes in a new tax regulation that allow deductions related to double debts, permit accelerated depreciation for certain categories of assets. These measures are in effect as of 1 January 2015.
Under the new regulation, a provision for doubtful debt expense will be accepted for corporate income tax purposes for entities other than banks and insurance companies where certain conditions are met. Among others, these conditions are as follows:
The new regulation entitles taxpayers to adopt an accelerated depreciation method by increasing the depreciation rates set out in the regulation, provided the adopted depreciation rates do not exceed 3 times the rates in the regulation. Once a taxpayer adopts accelerated rates, they cannot be changed.
It is not allowed to adopt such accelerated depreciation method for machines and machinery and other capital assets entering Jordan temporarily.
Some of the new depreciation rates are as follows:
|Type of asset||New depreciation rate|
|Furniture and furnishings used in hospitals, hotels and inns, cafes, restaurants, cinemas and places of entertainment and rest houses, swimming pools||15%|
|Computers, related hardware and medical equipment
|Other intangible assets, including purchased goodwill, patent, trademark, design, composition of the mixture, confidential process and the right of publication, copyright and the right of the concession, the use of or the right to use the industrial equipment, commercial or scientific experience and related information||10%|
1 Income Tax Regulation No 55 for 2015, issued pursuant to Income Tax Law No 34 2014, which entered into force on 1 January 2015.