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  SALES TAX FREQUENT QUESTIONS  
   
 

What is GST?

1.            

What is GST?

 

   
What is SST?

2.            

Based on Article 2 of the law, SST is the Special Sales Tax (excise-like) imposed at specific and/or ad valorem rates on the import or supply of goods and services listed in schedule (1).

 

   
What is the difference between a taxpayer and a registered person?

3.            

Based on Article 2 of the law, a taxpayer is a person importing or supplying taxable goods and/ or services while registered or required to be registered with the tax department. An importer is considered a taxpayer even if the import is for personal reasons.

A registered person, on the other hand, is the person who has registered with the tax department, whether required or entitled to registration.

 

   

What is goods?

4.            

Based on Article 2 of the law, goods are any natural material, animal product, agricultural product or industrial product, including electricity.

 

   

What is a service?

5.            

Based on Article 2 of the law, a service is any work done by a person for a consideration, including the provision of benefits to third parties, while not including a supply of goods.

 

   

What is a supply of goods for GST purposes?

6.            

Based on Article 4/a of the law, a supply of goods, for GST purposes, is the transfer of goods from a supplier to a purchaser for a consideration. A supply of goods is also the use of goods by a taxpayer for his own purposes, enabling others of this whether or not for a consideration or disposal of goods in any legal way transferring ownership.

 

   

What is a supply of service for GST purposes?

7.            

Based on Article 4/a of the law, a supply of service, for GST purposes,  is the provision or delivery of service by a supplier to the purchaser for a consideration.

 

   

What is the scope of GST?

8.            

Based on Article 4/b of the law, the following shall be subject to GST: 1- Supply of goods and/ or service unless such a supply is non-taxable or tax-exempt by law, 2- Import of goods and/ or service from a place outside the country, free zones and duty free shops, unless such an import is non-taxable or tax-exempt by law.

 

   

What are the goods and services subject to SST and in which cases?

9.            

Based on Article 4/c of the law, goods and services listed in Schedule (1) attached to the GST Law are subject to special sales tax in a single stage in any of the following cases: 1- Import of those goods from abroad, from free zones and duty free shops, 2- Putting the locally produced goods into home use for the first time or at the first or subsequent point of sale as determined by internal instructions issued by the Director for this purpose.

 

   

How are the Customs Tariff Tables and the UN international classifications linked to the GST Law?

10.         

Based on Article 5/a of the law, the Customs tables and explanatory notes effective under the Customs Law are adopted for the nomenclature of goods. The UN international classifications are adopted for the identification of services.

 

   

What is the GST standard rate?

11.         

According to Article 6/a, the import or supply of goods and services is subject to a standard rate of 16% of the value.

 

   

What is the SST rate?

12.         

According to Article 6/a, the goods and services listed in Schedule 1 attached to GST Law are subject to a special tax determined by bylaw issued for this purpose. The rates were determined in bylaw 80 of 2000.

 

   

What are the goods and services subject to zero rate?

13.         

According to Article 7/a and Article 22/a – a) GST and SST shall be at the rate of zero on the import or supply of the following goods and services: 1- goods listed in Schedule 2 attached to the law; 2- goods and services supplied to free zones and duty free shops or exported to a place outside the country; 3- goods and services supplied to the entities exempted under Article 21 of the law, which includes a- Hid majesty the king, b- embassies, non-honorary missions and consulates for their own use based on recommendations by the Foreign Minister and subject to reciprocity; c- members of the diplomatic and consul missions accredited to the country provided they be non-Jordanians and non-honorary based on recommendations by the Foreign Minister and subject to reciprocity; D- International and regional organisations operating in the country including non-Jordanian staff enjoying diplomatic status; e- goods and services imported or locally purchased for use by: 1- Armed forces, public security, intelligence and civil defence; 2- Mosques, churches, orphanage centers, centers for the elderly, sport and cultural clubs and persons with special needs; 3- Projects enjoying the exemptions stated in the investment promotion law; f- Any goods or service or entity by agreement, law or regulations.

 

   

What are the goods and services exempted from sales tax?

14.         

According to Article 7/b and Article 22/c: 1- Goods and services listed in Schedule 3 attached to the law are exempted from GST; 2- Any goods, service or person approved by the Cabinet for full or partial exemption in certain circumstances and based on reasonable grounds upon recommendation by the Minister of Finance; 3- Any goods, service or entity exempted by agreement, law or regulations.

 

   

What is the impact of supplying taxable and exempt goods and services in combination?

15.         

According to Article 7/c and Article 7/d: 1- With the exception of the exempted financial services listed in Schedule 3 attached to the law, the supply of goods or services listed in Schedule 2 or 3 attached to the law is subject to GST if supplied in combination with other goods or service subject to GST; 2- In case any of the exempt financial services listed in Schedule 3 attached to this law is supplied in combination with taxable goods, the supply of this goods remains taxable based on its value prior to being combined with the exempt service.

 

   

Who is required to charge and report GST?

16.         

According to Article 8, a registered person is required to charge, report and remit GST to ISTD within the due dates.

 

   

When do GST and SST become due on the supply of goods?

17.         

According to Article 9/a, GST and SST become due on the supply of goods in any of the following cases whichever comes first: 1- Delivery of goods, the director however may consider the date of tax invoice as the due date if the invoice is issued periodically or at the end of a specified period following the delivery date; 2- Issue of tax invoice; 3- Receipt of full or partial payment of the goods, receipt of account receivable payment or any payment method consistent with the terms of payment agreed on.

 

   

When do GST and SST become due on the supply of service?

18.         

According to Article 9/b, tax becomes due on the supply of service in any of the following two cases whichever comes first: 1- Issue of tax invoice; 2- Receipt of full or partial payment of the service supplied.

 

   

What is the base value for charging GST in Paragraphs a and b of Article 9 of the law?

19.         

According to Article 9/c of the law, tax should be charged by reference to the value of the tax invoice or the payment made in return for the goods or service whichever is higher.

 

   

When do GST and SST become due on the import of goods and when are they collected?

20.         

According to Article 9/d: 1- GST and SST become due on the imported goods at the time of clearance according to the tax rate effective on the date of registering the Customs Declaration; 2- GST and SST are collected in respect of imported goods at the time of clearance as stated in the Customs Law.

 

   

  21Are goods and services that are smuggled or in violation of the law subject to sales tax

According to Article (12) of the law, goods and services that are smuggled or in violation of the law are subject to the rates effective on the date the smuggle or violation took place. In case such date cannot be identified, they should be subject to the rates prevailing at the time the fraud was detected.

 
   

22 What are the non-taxable goods and services? According to Article (10) of the law, the following are not subject to tax:

 a- Supply of goods or service after having used them for personal or for non-business purposes provided the taxpayer has not claimed credits or refunds in respect of such goods or services;

 b- Transfer of immovable property;

 c- Sale of shares and stocks in companies, investment funds and financial securities of all kinds;

d- Earnings of employees and workers in return for their service or for what is related to their service in ministries, government departments, public institutions and other public sector bodies as well as earnings of employees and workers in return for their service or for what is related to their service for employers, including rewards or any other compensation paid to the boards of directors in legal entities;

e- Goods and services imported from outside the country for the projects set up in the free zones and duty free shops within the limits needed to perform business under the respective legislations. Non-taxability is limited to the business activities practiced inside these free zones and duty free shops; and

 f- Goods and services exported from free zones and duty free shops to a place outside the country.

 
   
23 What is the legal implication in case of ceasing or liquidating a business related to taxable goods? According to Article (11) of the law, in case of ceasing or liquidating a business related to taxable goods, tax becomes due on those goods which reverted to the legal successor at the time of disposal unless the successor is registered or had himself registered according to the law.  
24 Are goods and services that are smuggled or in violation of the law subject to sales tax?
According to Article (12) of the law, goods and services that are smuggled or in violation of the law are subject to the rates effective on the date the smuggle or violation took place. In case such date cannot be identified, they should be subject to the rates prevailing at the time the fraud was detected.
 
   
25 What are the legal provisions that are related to registration for sales tax? According to Article (13) of the law,
 a- A person supplying taxable goods or service is required to register with ISTD using the respective registration application at any of the following times which ever comes first:
1- Commencement of a new taxable business activity in case there is a sufficient evident that the taxable supplies in the subsequent 12 consecutive months may exceed the registration threshold set forth under Article 14 of the law,
 2- At the end of 12 consecutive months if taxable supplies then reach the registration threshold set forth under Article 14 of the law,
3- At the end of 11 consecutive months if taxable supplies may reach the registration threshold set forth under Article 14 of the law during that period and the first month following that period,
b- An importer of taxable goods or service is required to register with ISTD using the respective registration application within 30 days from importation regardless of the amount of import unless that import is for personal use,
c- In case the taxpayer failed to register within the due dates for registration, the director may register him retrospectively as of the date on which he should have registered under Article (a) above,
d- ISTD makes an entry of the registration applications submitted under Article (a) above into the respective registration log after making the necessary revision and verification. A taxpayer is then handed a registration certificate,
e- A registered person is required to inform ISTD in writing of any changes to the registration particulars within 30 days of occurrence, and
f- Registration form, data to be contained therein, terms and conditions, periods, registration procedures and registration certificate are all specified by instructions.
 
   
26 What is the registration threshold for sales tax purposes?
According to Article (14)/a,
a- Registration threshold is set by a bylaw. According to Bylaw (81) of 2000, it is stated that: - A registration threshold is the point where a person become liable to registration with ISTD as a taxable person required to charge tax and report it to ISTD,
b- The registration threshold for a person is when his taxable supplies of goods and services in the periods determined by Article (13) of the law reach or exceed the following amounts: 1- JD10,000 for a producer of goods subject to special tax, 2- JD50,000 for a person supplying goods other than those subject to the special tax under 1 above, 3- JD30,000 for service suppliers,
c- Registration threshold for a person making more than one business activity of those mentioned under Article (a) above is the lowest one.
 
   
27 Can a person register voluntarily for sales tax?
 According to Article (14)/b of the law, a person with taxable supplies of goods or services below the registration threshold is entitled to registration. In case he applies for registration, the same registration provisions applicable to registered persons apply to him.
 
   
 28What is the legal implication in case more than one person share the supply of goods or service? According to Article (7)/c of the law, in case more than one person share the supply of goods or service while any of them is not registered, their supplies of taxable goods and services fall under the same profession, vocation or specialty, and they do business together or in the same place, they, when accounting for their taxable supplies, are considered as one person for the purposes of the registration threshold.  
   
29Can a taxpayer’s sales tax registration be cancelled? According to Article (14)/d, the director may cancel the registration of any taxpayer in the following two cases: 1- If it is confirmed that the taxpayer is no longer making a taxable supply of goods or services; or 2- If the taxpayer applies for deregistration being no longer liable to registration by law. In such case, the effective date of deregistration is the end of the tax period during which the taxpayer applied for deregistration.  
   
 30What are the implications of deregistration? According to Article (14)/e of the law, 1- Tax becomes due on the goods in possession of the person at the time of deregistration under Article (14)/d. Tax on the goods is accounted for on the basis of the fair market value or the cost at the time of deregistration whichever is lower, 2- A person deregistered according to Article (14)/d is required to file a final tax return and pay the tax and any amounts due to ISTD within the due date.  
   
   
31 Can a taxpayer be exempted from registration? According to Article (14)/f of the law, if all taxable supplies of goods and services are subject to zero rate, the director may, upon request by the taxpayer, exempt him from registration. In case any change occurred afterwards where part of the supplies became subject to other tax rate, the taxpayer is required to reapply for registration within 30 days of the event.  
   
32 What is the value the registered person is required to declare in the tax return? Upon filing the tax return, the registered person is required to declare the actual value for the goods and services supplied as a base for calculating the tax.  
   
33 What is the actual value for the goods and services supplied? According to Article (15)/a of the law, the actual value for the goods and services supplied is the price paid or payable by the purchaser to the supplier. The director may validate the actual value by requesting the taxpayer to provide all relevant documents and records.  
   
34 Is the special tax part of the value for charging the GST? According to Article (14)/b of the law, the special tax due on the supply of goods or services is added to the actual value for charging the GST.  
   
35 What is the value taken to charge GST on imported goods? According to Article (14)/c of the law, GST on imported goods is charged by reference to the Customs value taken to charge Customs duties based on the effective tariff tables plus any other fees and charges due prior to clearance, including the special tax due under the GST Law.  
   
36 What is the tax period for a person registered for GST? According to Article (16)/a, the tax period for a person registered for GST is two months. The beginning and the end of a tax period are set by the director.  
   
37 What is the tax period for a person registered for SST? The tax period for a person registered for SST is one months. The beginning and the end of a tax period are set by the director.  
   
38 Can a tax period be extended? According to Article (16)/a, the director may, in certain cases, extend the tax period for a registered person up to six months.  
   
39 What are the obligations of a registered person?
According to Articles (16)/b and (18)/a,
 1- A registered person is required to file a tax return, whether manual or electronic, on the respective form for each tax period even if there are no supplies,
 2- A registered person is required to pay the due tax during the month following the tax period. The director may give the registered person additional period not exceeding one month,
3- A registered person is required by instructions to issue a tax invoice showing the taxable supply of goods or service.
 
   
40 Is a person not registered for sales tax required to issue invoices and keep proper books and records?
According to Articles (28)/b and (19), if a non-registered person is supplying a taxable goods or service, the director may require him to issue invoices and keep proper books and records to enter the transactions made and keep those invoices and records for five years following the end of the fiscal year in which they were issued or kept.
 
   
What are the allowable expenses. 41
As defined in Article (2) of the law, allowable expenses should meet the following criteria:
 1- They should have been spent or incurred in the tax period;
 2- They should have been totally and exclusively spent for generating a taxable income; and
3- They should be deducted from the gross income
 
   
What is a taxable income 42
As defined in Article (2) of the law, a taxable income is calculated by deducting the following items from the gross income, respectively:
1- Allowable expenses;
2- Loss brought forward from previous tax periods;
3- Personal exemptions; and
4- donations.
 
   
Is income earned inside the country by government institutions, public institutions and municipalities taxable 43
According to Article (4)/a/2 of the law, income earned inside the country by government institutions, public institutions and municipalities is exempted from income tax. A business profit or annual surplus is excluded from exemption by Cabinet decision upon recommendation by the minister.  
   
What are the government institutions and the public institutions 44
1- There are two kinds of public institutions:
 a- governmental public institutions and non-governmental public institutions,
 b- A non-governmental public institution is the same as public institution.
 
2- There is no legal definition for governmental public institutions and non-governmental public institutions. They were generally defined based on Law Interpretation Bureau Decisions No. (2) of 1985, (1) of 2012, (19) of 1965, (17) of 1975, (10) of 1961, and (7) of 1979. Accordingly, these institutions can be generally identified based of the following characteristics:  
   
Non-Governmental Public Institution Governmental Public Institutions Interpretation Decisions No. Description
Non-governmental public institutions are those established by law and granted a legal status to perform certain type of public services and achieve given purpose/s under supervision of the state. Governmental public institutions are administrative authorities established by law to perform state functions. 2 of 1985 General definition
1- Established by law or any other legislation.
2- Granted a legal status.
3- Its purposes are for public benefit.
4- It performs under the state’s supervision.
1- One of the administrative law persons managed by the common law and exercises the public power to achieve its goals.
2- The services provided should be public services.
3- Its funds are considered public funds in terms of accounts and control.
4- Its employees should be public servants and their decisions are administrative ones.
5- It should have the right to enter into contracts and enjoy special financial status.
19 of 1965,
17 of 1975
..................
10 of 1961,
7 of 1979
2 of 1985
Characteristics
 
   
Bearing in mind that government owned companies are not governmental public institutions or public institutions but rather business corporations treated as any other business for income tax purposes.  
   
What is a business profit or surplus of annual revenue for government institutions, public institutions and municipalities 45
1- It is a profit of an investment activity: positive difference between revenue and expenses for one fiscal year,
 2- Surplus of annual revenue for government institutions and public institutions is the difference between its own revenue and expenses for one fiscal year (definition of financial surplus) under law (30) of 2007 on financial surpluses.
 
   
Has the Cabinet excluded income of government institutions, public institutions and municipalities from income tax exemption provided in Article (4)/a/2 of the law 46
The Cabinet has excluded income of government institutions, public institutions and municipalities, generated from rented property, vacating money and key money, from income tax exemption by Cabinet decision (9850) of 2015. This income was subjected to income tax as of 1/1/2015.  
   
What is the definition of a municipality 47
According to Article (3)/a of the municipality law (13) of 2011, a municipality is a civil institution with financial and administrative autonomy. It creates and cancels jobs and defines its jurisdiction, functions and powers by law. Based on Article (6) of the same law, Great Amman Municipality (GAM) is considered a municipality in all respects and is subject to the legislations applicable to municipalities unless otherwise provided in this law or any other legislation  
   
Is income of government institutions, public institutions and municipalities generated outside the country subject to income tax 48
According to Article (3)/c/1 of the income tax law (34) of 2014, net income earned by a resident person from any source of income outside the kingdom is taxable provided that it should be originated from funds or deposits inside the kingdom. Therefore, if a government institution, public institution or municipality generated an income from outside the country but originated from funds or deposits inside the country, it should be taxable inside the country unless there is a bilateral double taxation avoidance treaty with other countries where the income was earned. The tax treaty should be applicable in this case.  
   
There are two methods for contractors’ financial accounting; percentage of completion and completed contract. If the percentage of completion method is used for financial accounting, which one is used for purposes of tax accounting under income tax law 49
According to Article (15) of the law, percentage of completion is used for manufacturing or installation contracts with a period of performance exceeding 6 months from the starting date to account for income tax based on the progress made to the contract. Accounting for income tax in such cases is based on instructions (9) of 2015 pertaining to accounting for income and allowable expenses regarding long term contracts.  
   
To which territories of the country does the investment law (30) of 2014 apply 50
1- Investment law (30) of 2014 apply to all territories of the country except ASEZA. These territories are:
 a- free zones,
b- investment zones,
c- the rest of the country excluding ASEZA.

 2- ASEZA law (32) of 2000 apply to ASEZA zone.

3- Investment law (30) of 2014 was published in the Official Gazette (5308) dated October 10, 2014.
 
   
If the provisions of the investment law conflict with any other legislation, which one takes precedence 51
According to Article (44) of the investment law, the provisions of the investment law are applicable in case there is a conflict with any other legislation.  
   
Is income earned outside the country taxable 52
1- According to Article (3)/c/1 of the income tax law (34) of 2014, net income earned by a resident person from any source of income outside the country is taxable provided it should be originated from funds or deposits inside the kingdom.
 2- According to Article (3)/c/2 of the law, total net incomes earned to a branch of a Jordanian firm operating outside the kingdom and declared in its financial statements that are certified by an external auditor are taxable.
3- The tax rate on the net income earned under items (1) and (2) above is 10%.
 
   
Who represents the legal person before ISTD 53
According to instructions (14) of 2015 pertaining to delegation, representation and authorization before ISTD, a person delegated by a legal person is the tax agent representing the legal person in administrative issues before ISTD based on the registration certificate issued by the concerned party or a delegated person who qualify for the delegation terms and conditions stipulated in the said instructions.  
   
Based on the income tax law, are there incomes excluded from the accrual accounting basis treatment 54
Yes, according to Article (14)/b and c of the law, the following persons are allowed to use the cash accounting:
1- A natural person whose income is generated from profession or handicraft. 2- A bank may, by Executive Instructions, account for the tax on outstanding interest, profits and commissions in the year of receipt.
 
   
What are the taxable incomes 55
According to Article (3)/a of the income tax law, any income earned in or from the Kingdom for any person is taxable unless exempted by law.  
   
How much is the tax-exempt portion of the pension income 56
According to Article (13)/a/4 of the law, the first JD 3,500 of total monthly pension payment, including illness benefits, is exempted from income tax.  
   
As far as income tax is concerned, what is the benefit of the tax treaties 57
According to Article (4)/a/17, income included in the double-taxation avoidance treaties concluded by the Government is exempted to the extent covered under these treaties.  
   
Is end-of-service compensation taxable 58
According to Article (4)/a/12 of the law, end-of-service compensation due to employees according to the effective legislations or any concluded collective arrangements approved by the Minister is totally exempted for amounts payable before December 31, 2009. However, any amount exceeding JD5,000 that is payable as of January 1, 2010 is taxable.  
   
If bank Y, operating in the country, paid JD10,000 to bank X not operating in the country. Is this income taxable for bank X according to Article (4)/a/15 of the law and what is the obligation on bank Y according to Article (12) of the law 59
1- According to Article (4)/a/15 of the law, if the interest results from a deposit, it is exempted for bank X. And according to Article (12)/a/2 of the law, bank Y is not required to withhold tax from this payment. 2- According to Article (3)/a of the law, if the interest results from a loan, it is taxable for bank X. And according to Article (12)/b of the law, bank Y is required to withhold 10% of this payment because bank X is non-resident. The tax withheld by bank Y is 10,000 × 0.10 = JD1,000 which should, according to Article (12)/e of the law, be paid to ISTD within 30 days from payment of the interest to bank X.  
   
Where and when can a tax auditor conduct an audit 60
1- According to Article (28)/c of the law, a tax auditor may conduct an audit in 1- taxpayer premises; or 2- any other place related to the taxpayer’s business. 2- An audit may take place 1- during business hours, 2- outside business hours provided a written approval be obtained from the DG.  
   
How can a tax return be filed to ISTD 61
According to Article (41) of the law, a tax return can be filed to ISTD by any of the following means: a- In person by the registered person or his delegate; or b- Any of the means that ISTD approve by instructions, namely: 1- registered mail, 2- banks, 3- any public or private mail delivery service approved by the Cabinet upon recommendation by the minister, 4- electronic means.  
   
Can a registered person amend the tax return 62
Yes, according to Article (42) of the law, a registered person can amend the tax return in case he finds out an error therein. In such case, a registered person is required to pay the additional tax and the late payment penalty. The registered person is not deemed to have committed a violation or a crime unless ISTD has found out about the error first or the auditor has issued an audit notice in respect of that tax return.  
   
Can the auditor audit the tax return after 4 years from the filing date 63
No, according to Article (43)/a, the auditor cannot audit the tax return after 4 years from the filing date  
   
Where and when can the auditor audit the tax return and the taxpayer’s accounts 64
According to Article (43)/c and d, the auditor may conduct an audit at the premises of the registered person or at any other place related to him. The auditor may, by DG’s approval conduct the audit outside the business hours.  
   
In case the auditor finds out that a tax return needs to be amended for a tax assessment, what are the options the taxpayer has 65
According to Article (44)/b of the law, a taxpayer has two options: 1- Either agrees in writing on the assessment contained in the audit report; or 2- Disagrees in writing on the assessment contained in the audit report. Refusal to sign or failure to attend the debrief session is considered a disagreement.  
   
Can a taxpayer/ a registered person appeal against the audit report is case of disagreement 66
Yes, according to Article (44)/b/2 of the law, the audit report may be appealed to the appeal panel.  
   
What happens if the registered person failed to file the tax return by the due date 67
According to Article (45)/a of the law and instructions (3) of 2010 pertaining to raising protective assessments, ISTD generate a protective assessment in respect of the default tax period/s plus any penalties and other charges due. The registered person is served a notice of the protective assessment raised.  
   
Is the protective assessment subject to appeal 68
No, according to Article (45)/a of the law, the protective assessment is not considered final for appeal purposes. It cannot be appealed to the appeal panel or the court.  
   
Can ISTD collect the amounts requested in the protective assessment notice 69
Yes, according to Article (45)/a of the law, those amounts are collectible after the expiry of 30 days from the notification date.  
   
Can a registered person file the tax return after generating the protective assessment 70
Yes, this is possible according to Article (45)/c of the law, where a protective assessment is automatically cancelled in case the registered person files the tax return for the default tax period/s and pays any penalties or amount due on condition that this be done prior to the issuance of an officer’s assessment (administrative assessment) under Article (46) of the law.  
   
What happens if the taxpayer fails to respond to the protective assessment notice 71
According to Article (46)/a and c of the law and instructions (5) of 2010 pertaining to the bases for generating sales tax officer’s assessment, the auditor may generate officer’s assessment, assisted by the sources of information identified by instructions. The protective assessment becomes automatically cancelled upon the issuance of the officer’s assessment.  
   
Can a registered person appeal against the officer’s assessment 72
Yes, according to Articles (46)/b and (48)/b of the law, the officer’s assessment can be appealed to the appeal panel within 30 days from serving the registered person a notice of the officer’s assessment.  
   
In case the taxable supplies of a person are above the registration threshold and he is not registered for sales tax, what power can the auditor use in this case 73
According to Articles (47)/a and (48)/b of the law, if ISTD finds out that a non-registered person is supplying taxable goods or services and his estimated taxable supplies may exceed the registration threshold, the auditor may generate an officer’s assessment of the tax for the respective period/s plus any amounts payable. The taxpayer is served a notice of the assessment, which is subject to appeal to the appeal panel within 30 days of notification.  
   
Can a registered person appeal against the decision made by the appeals panel 74
Yes, according to Article (48)/h of the law, in case the taxpayer does not agree with the decision taken by the appeals panel, he may appeal to the court within 30 days of receiving a notice of the appeals panel’s decision.  
   
What happens if the taxpayer fails to pay the tax by the due date 75
According to Article (51) of the law and instructions (2) of 2010, if the taxpayer fails to pay the tax by the due date, ISTD charges the taxpayer a late payment penalty of 0.4% of the tax due per week or any part thereof.  
   
Do ISTD’s financial rights prescribe over time 76
No, according to Article (53)/c of the law, ISTD’s financial rights confirmed by a court decision or acknowledgement by the taxpayer do not prescribe over time.  
   
Can a person claim back the tax or penalties paid more than 3 years earlier 77
According to Article (53)/b of the law, under no circumstances would the ISTD be prepared to consider any claim or suit to recover the tax or penalties paid more than 3 years earlier.  
   
What actions should ISTD take if the taxpayer fails to pay the tax or amounts due by the due date 78
According to Article (59)/a of the law, in case of failure to pay the tax or amounts due by the due date, ISTD will send a demand notice requesting the taxpayer to pay the tax within 30 days of notification. In case of no response by the taxpayer, tax is enforced using the State Funds Collection Law where the DG or his delegate practices all the powers given to the Administrative Governor and the State Funds Committee.  
   
Can a property of the delinquent taxpayer be seized? Or, can a delinquent taxpayer be banned from travel 79
Yes, according to Article (55)/a and b of the law, if the tax and related amounts due exceed JD2,000, the DG may attach lien on the movable and immovable property of the taxpayer or ban him from travel if ISTD has sufficient evidence that the taxpayer may conceal, or dispose of, his property in any way that would prevent execution on this property. However, travel ban should be approved by the minister.  
   
Can the taxpayer appeal against the lien decision and travel ban 80
Yes, according to Article (55)/c of the law, the taxpayer may appeal to the court against the lien decision and the travel ban.  
   
How much of the property can ISTD seize in case the taxpayer fails to pay the due amounts by the due date 81
According to Article (56) of the law, a- In cash money cases, the seized amount should not exceed the amount of tax and penalties due, b- In non-cash money cases, the DG, upon request of the taxpayer, takes whatever actions needed to assess the seized property and limit seizure to twice the amount of tax and penalties due. Assessment cost should be assumed by the taxpayer.  
   
What are the obligations on the liquidator, heirs, bankruptcy agent or any other person in charge of any similar liquidation or settlement of any kind 82
According to Article (64) of the law, the liquidator, heir, bankruptcy agent or any other person in charge of any similar liquidation or settlement of any kind should inform the Director in writing of initiating the liquidation process, declaring bankruptcy or any other procedure to report and document the amounts due to ISTD. In case of failure to do so, those persons will be held accountable directly and personally for the payment of those amounts. However, heirs should not be relieved from the payment of those amounts from any movable or immovable property that revert to them by way of heritage.  
 
     
         
Income and Sales Tax Department
   
   
 



 
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