Cabinet approves Draft Law amending the Income Tax | Business | Ammon News

Cabinet approves Draft Law amending the Income Tax

[9/24/2018 4:22:44 PM]

AMMONNEWS - Based on dialogues with associations, political parties and other institutions of civil society, chambers of industry and trade, the agricultural sector and all other sectors and meetings held in governorates, and after studying all the electronic observations on the official sites, including the website of the Legislative and Opinion Bureau received from citizens, the cabinet on Monday approved the Draft Law amending the Income Tax in preparation for sending it to the Lower House of the Parliament in accordance with the Constitution.

Following are the most important amendments:

- Adding JD1,000 as bills for health, education, loan interest, and rent in 2020 and thereafter, to increase tax exemption for families to JD18,000 instead of JD17,000.

- The tax on banks was raised from 35 percent to 37 percent.

- The tax exemption for retirees has been reduced from JD 3,500 to JD 2500 per month.

- Exempting social solidarity funds of unions from the income tax.

- The Progressive tax has been emphasized by adding a new segment to those of very high income, so that the income exceeding JD 1 million annually is subject to a 30 percent tax rate.

- Reducing the tax on manufacturing industries in the developmental zones so that they are increased annually by 1 percent to 8 percent maximum, instead of 20 percent according to the draft law.

- Reducing the tax in free zones and institutions that practice transit trade to 6 percent, instead of 20 percent.

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