Cabinet offers exemptions from penalty payments on overdue taxes, fees

AMMAN — The Cabinet on Monday approved a set of tax and fee exemptions to incentivise tax payers to pay overdue amounts accumulated over previous years, the Jordan News Agency, Petra, reported.

The new rules included granting exemptions to the taxpayers from overdue claims owed to the Income and Sales Tax Department, the Jordan Customs Department (JCD), the Aqaba Special Economic Zone Authority (ASEZA) and the Greater Amman Municipality (GAM), as well as the Ministry of Finance, such as income tax.

As for the sales tax claims, exemptions included all due fines, legal interests and civil compensation fees, on the condition that the taxpayer pays the principal claim amounts below JD500,000 by the end of 2018, and exempting taxpayers from 50 per cent of these due fines if they miss the deadline, until March 31, 2019.

The same rule applies to the income tax claims regarding due fines and legal interest, according to Petra.  

The same rules also apply to fines owed to ASEZA and those related to property fees within zoned areas in GAM and other municipalities, along with dues owed to the Finance Ministry.

As for the JCD claims, which include fines on overdue custom duties, the Cabinet exempted taxpayers from half the fines and fees to undo confiscation if they pay the principal claim amount, below JD500,000, by the end of 2018, and 25 per cent, if the payment is made after the deadline until March 31, 2019.

However, the exemptions do not cover financial claims in cases seen by an international arbitration panel or the State Security Court. 

The prime minister authorised the minister of finance to issue the necessary instructions to put the new regulations in effect and address cases of partial payments into a way that the exemption granted is proportional to the amount paid.

Commenting on the decision, Chairman of the Amman Chamber of Commerce Senator Issa Murad said the move is commendable and prone to help revive economic sectors.

Murad added in a press statement, carried by the Jordan News Agency, Petra, on Monday, that the decision would ease the “heavy burden” on private businesses, especially the commercial sector.