02/02/2022

Income and Sales Tax Department has issued a guide related to the preparation of the special report for each country (CBCR) to complement the acquaintance of the taxpayers with the technical aspects of preparing the report on the application of regulation No. 40 of 2021 The Transfer Pricing regulation for Income Tax Purposes and Executive Instructions No. 3 of 2021 Concerning Transfer Pricing for Income Tax Purposes.

The guide includes the necessary operational and technical procedures that enable the taxpayers to prepare the report by answering the questions contained in the guide.

Where the list of associated concepts and procedures for preparing the special report for each country were clarified and explained and the questions related to what is the special report for each country required to be submitted under the transfer pricing regulation and when should the taxpayer submit the report (CBCR) to Income and Sales Tax Department? Who is obligated to submit a report (CBCR) to Income and Sales Tax Department? What is the Jordanian legislation that regulates the preparation of the CBCR report? What companies are required to submit a CBCR report in Jordan? What information and data should the CBCR report include? What is the way to show the revenue in the CBCR report? And how should the intra-state transactions be shown in the report? And when should contractors or seconded employees be included as employees of a multinational enterprise? And how should the data related to the permanent establishment be shown in the CBCR report? What information should be included in the tax due field in the CBCR report, and what are the factors that are relied upon to determine the main activity of a multinational company? What data sources are included in the CBCR?

The guide also included the procedures for submitting a report (CBCR) and how to obtain the tables included in the report? How is the report submitted? And notices required of multinational companies and answering questions related to what is the notice required to be submitted by multinational companies with a report (CBCR)? What is the notice submission deadline? Does the Enterprise have the right to add additional data about the information required in the report (CBCR)?

Dr. Hossam Abu Ali, Director General of Income and Sales Tax Department, said that the issuance of this guide is part of a series of guidelines that the department is issuing to contribute to enhancing the culture of taxpayers and guiding them in organizing tax returns and reports required of them in a way that enables them to avoid legal fines.

Note that the department has published on its website the guidelines for the application of transfer pricing and the application of standard conditions for enterprises registered in the development zones, in addition to the guideline on preparing the special report for each country (CBCR).