KPMG in Jordan provides updates on reductions to value added tax (VAT), special sales (excise) tax and customs rates for certain items. KPMG in Jordan also highlights the impact of the tax authority’s application of sampling on audits and assessments of corporate income tax returns.
As of 19 October 2015, a new reduced value added tax rate of 8 percent applies to:
As of 19 October 2015, a new reduced special sales tax (excise) rate of 8 percent (instead of 25 percent) applies:
As of 19 October 2015, a new reduced customs duty rate of 5 percent (instead of 10, 20 or 30 percent) applies to:
Following a sampling process, Jordan’s Income and Sales Tax Department accepted as filed 85 percent of corporate income tax returns submitted for the years 2011 – 2014 without amending or auditing these returns. This percentage is the highest in a decade, which may signal that the tax authority’s sampling approach is more rigid than previously and that the tax authority is focusing on the quality of tax audit decisions, rather than quantity.