10/10/2022

The Director General of the ISTD, Dr. Hossam Abu Ali, presented an explanation of the tax reforms packages implemented by the department, explaining that they are in line with international standards in addressing distortions, imbalances and loopholes in tax legislation to combat tax evasion and address tax evasion and facilitate the private sector and taxpayers. He indicated that these tax reforms include five main axes in their legislative framework, including the application of transfer prices, standard conditions for incentives, the supply base for goods and services, standardization of tax administration, and a review of tax incentives in the Investment Environment Law.

Abu Ali added during a seminar organized by the Association of Tax Experts for its affiliates at the Amman Chamber of Commerce that the reforms adopted by the department in combating tax evasion, addressing tax evasion and applying international standards had a role in increasing compliance and expanding the base of taxpayers. These reforms did not include any increase in the taxes currently imposed, nor the imposition of any new taxes, These reforms focused on combating tax evasion and addressing tax avoidance, applying international practices, and raising the efficiency of auditing and collection.

Abu Ali indicated that the law amending the Aqaba Economic Zone Law for the year 2021, which granted the ISTD the powers to audit, estimate and collect income tax and general sales tax in the Aqaba Economic Zone, came with the aim of unifying tax administration while preserving benefits and exemptions for those registered in the Aqaba Economic Zone. and investors, simplifying the procedures provided to them, removing any distortions or differences in the performance of the tax service, working to raise the efficiency of auditing, and applying unified standards to all tax files.

Abu Ali indicated that the amending law of the General Sales Tax Law No. 15 of 2022 worked to address tax distortions and imbalances, and reduce tax evasion and avoidance by taking measures that enable the government to combat and address them.

And he stated that the law did not include imposing any tax on any new good or service, nor did it include any increase in taxes or cancellation of any exemptions granted, and there was no significant change to the obligated taxpayers.

The law will also speed up taxpayers' receipt of their refunds by reducing the legal deadlines to one third of the period currently in force and adopting the principle of returning refunds out of the tax collected instead of allocating provisions for the disbursement of these refund.

Abu Ali explained that the inclusion of the principle of supplying goods and services in the draft law achieves justice among taxpayers working in the direct economic sectors and addresses the imbalances and fills the gaps that lead to tax violations.

He pointed out that the Transfer Pricing System No. (40) for the year 2021 was issued with the aim of enhancing transparency and tax justice among taxpayers through the use of a fair price in pricing transactions between stakeholders, as well as applying the standard conditions for institutions registered in development areas.

He said that the level of tax audits has become "matching international best practices, as the transition from traditional auditing to the use of artificial intelligence in audit procedures has taken place."

During the meeting, Abu Ali stressed that he is keen to ensure that members of the association continue to apply tax legislation and help the taxpayers to complying with it, as well as working with the department as partners in achieving tax justice and stopping tax violations.

He said that the department will not tolerate any violations committed by the commissioners, as the department has taken measures against some violators and prevented them from reviewing the department because of the violations they committed.

And he indicated that the department benefited from the Corona period by making a qualitative and advanced leap in its electronic services provided to taxpayers and working to provide the services needed by the taxpayer electronically, which witnessed an increase in the number of electronic services that were developed, as the number of services provided electronically became 55 services provided to taxpayers without review Department offices.

For his part, the head of the Tax Experts Association, Hashem Hamza, stressed the importance of the partnership between the ISTD and the Association of Tax Experts, considering it a major partner of it and he praised the department's continuous communication with the association, opening dialogue with it, listening to the opinions and suggestions of the association's members, and informing them of all that is new.

For his part, Mr. Ibrahim Harb, who moderated the dialogue, said that the aim of this meeting is to maintain communication with the department and to enable association members to view all decisions, instructions and regulations issued by the department, as well as to understand the amendments that occurred to the general sales tax law and answer members’ inquiries.