• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 2/5/2014

Jordan - Indirect tax changes include increased rates 

February 5:  Jordan has increased the rates of certain indirect taxes, including:
  • Clean energy manufacturing inputs - An increase in the rate of the general sales tax to 16% (from 0%) on imported raw material and inputs used to manufacture electricity consumption-saving equipment and renewable energy equipment such as solar energy, wind energy, and water energy, and increased customs duty rate on such raw materials and inputs to 30%

  • Imported clothes - An increase in the customs duty rate on imported clothes to 20% (up from 5%)

  • Cell phones and tablets - Previously exempt mobile devices, smart phones, and tablet devices now subject to consumption tax at a rate of 7% in the Aqaba Special Economic Zone

  • Interest earned by insurers - Previously exempt interest earned by insurance companies on investments in bonds and from loans granted to life insurance policies holders now subject to general sales tax at a rate of 16%

  • Classifying business activities - Jordan’s tax authority to adopt version 4 of International Standards Industrial Classifications (ISIC) as of 1 January 2014

Read a January 2014 report prepared by the KPMG member firm in Jordan: Jordan – Round-up of indirect tax changes

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