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Sales Tax Regulation - 2772000

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Sales Tax Regulation - 2772000

    Translation from Arabic Language

    Regulation No. 54 for the year 2005

    “Sales Tax Regulation on the Goods and Service within the Aqaba Special Economic Zone (ASEZ)”, issued by virtue of the two articles (37) and (56) of

    the Aqaba Special Economic Zone Law No. 32 for the year 2000.

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    Article (1): This regulation shall be known as Sales Tax Regulation on the

    Goods & Services within the Aqaba Special Economic Zone

    (ASEZ) for the year 2005” and shall be deemed effective from its

    publication date in the Official Gazette.

    DEFINITIONS:

    Article (2): Wherever mentioned herein, the following words and phrases

    shall have the meanings ascribed thereto hereunder unless the

    context indicates otherwise:

    The Law : The Law of the Aqaba Special Economic Zone (ASEZ).

    The Zone : The Aqaba Special Economic Zone (ASEZ).

    Customs Area : The lands and Territorial waters of the Hashemite

    Kingdom of Jordan with the exception of the Zone.

    The Authority : The Aqaba Special Economic Zone Authority (ASEZA).

The Chairman : The Chairman of the Board.

The General

    :

    Sales Tax Law The Law of General Sales Tax in force. 53475465.doc-5/7/2010-4 1

    Translation from Arabic Language

    Registered : Person registered within the Authority (ASEZA) according Corporation to the provisions of the Law.

Sales Tax on

    The tax stipulated in item (1) of Clause (a) of Article (37)

    Goods & :

    of the Law.

    Services

    Special Tax : The tax stipulated in clause (c) of Article (37) of the Law.

Sales Tax : The tax stipulated in the two items (2) and (3) of Clause (a)

     of Article (37) of the Law.

    Tax : Sales tax on goods and services and the special tax.

    The registered : The person registered by virtue of the provisions of this

    Regulation for the purposes of the sales tax on goods and

    service along with the Special Tax and the Sales Tax as

    might be required.

    Sale : Selling the goods or service as intended in the Law of

    General Sales Tax.

Person : The natural or legal person.

    Non-resident : The natural Jordanian or foreign person who has resided Person outside the Kingdom for more than 180 (one hundred and

    eighty) days during the twelve months prior to his/ her

    departure from the Kingdom.

53475465.doc-5/7/2010-4 2

    Translation from Arabic Language

    SALES TAX ON GOODS & SERVICES:

Article (3): The goods and services, listed within Table No. (1) annexed

    to this Regulation, in case of selling them for consumption in

    the Zone, shall be subject to the sales tax on goods and

    services.

    Article (4): In collecting and returning the tax, the Authority shall

    implement the provisions included in this Regulation and the

    instruction issued by virtue of it.

Article (5): The seller who is registered for the Sales Tax on Goods and

    Services should collect this tax in each case of selling goods

    or services subject to this tax unless the buyer presents a

    certificate indicating that he has been registered for this tax

    and for the same activity practiced by the buyer, and unless

    the buyer has issued an invoice which includes the buyer’s

    name and registration number for the sales tax on the goods

    and services available on the part of Authority (ASEZA).

Article (6): Selling any goods not listed within table No. (1) mentioned

    in Article (3) of this Regulation shall be subject to the Sales

    Tax on Goods and Services in case selling such goods is

    linked or related to a taxable service.

    THE SPECIAL TAX:

    Article (7):

    a) The special tax imposed on tobacco and related products, alcohol,

    intoxicants and beer shall be collected once in case of the first act of

    selling after importing or producing these items as might be required.

    b) The special tax value shall be accrued on the goods mentioned in Clause

    (a) of this Article shall be added to their real value at the time of selling

    them for consumption in the Zone, for the purposes of calculating the

    sales tax on goods and services.

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    Translation from Arabic Language

    COMMON TAX PROVISIONS

    Article (8): In implementation of the provisions of this Regulation:

a) The Board may impose a bank guarantee warrants the taxes and fines in

    case they have been accrued on the registered person’s sales until they are

    paid within time limit stipulated by law.

    b) Nomenclatures of the goods within the tariff tables and explanations shall

    be adopted according to the Customs Law in force.

    Article 9: Selling any goods or services derived from practicing an economic

    activity according to the provisions of the two articles (22) and (23) of

    the law shall be considered an act of selling within the Zone provided

    that:

a- The sale has resulted from an activity practiced within the Zone.

    b- The goods are sold for consumption within the Zone.

    c- Selling services shall be considered as such provided that:

    1- If the beneficiary from the service is a resident within the Zone.

    2- If the service itself has been provided within the Zone.

    3- If the service provider and the means of providing the service exist

    within the Zone.

    4- Benefiting from the service has taken place within the Zone.

    Article 10: In the event that the services mentioned in clause (c) of article (9) of

    this Regulation have been provided within the Zone, and the

    Customs Zone and outside the Kingdom either collectively or

    individually, then the service charge shall be considered as being

    derived from selling the service within the customs area unless the

    accounts, prepared for the relevant person according to the

    53475465.doc-5/7/2010-4 4

    Translation from Arabic Language

    internationally approved accounting standards, indicated the

    consideration accrued from each service separately.

    Article 11: a- Any person selling goods or services subject to the sales tax on

    goods and services pledges to register according to this

    Regulation at the Authority using the form especially prepared

    for this purpose in thirty days from the date of starting a new

    business and upon carrying out the first process of selling goods

    or services subject to the sales tax on goods and services as

    necessary.

    b- For the purposes of the special tax, any person who imports or

    produces goods subject to the special tax shall register by filling

    the form prepared for this purpose, upon the first process of

    import or production has been carried out.

    c- Tax registration applications filed shall be recorded according to

    the provisions of the two clauses (a) and (b) of this Article in a

    special register prepared for this purpose after ascertaining the

    accuracy of the information included in the registration

    applications and that the corporation has been licensed and has

    practiced the taxable activity. The Authority shall issue a

    certificate to that effect.

    Article 12: Each person who sells goods or services subject to the sales tax

    pledges to register at the Authority (ASEZA) according to the

    principles mentioned in the General Sales Tax Law and the

    regulations issued according to it.

    Article 13:

    a- The chairman shall be entitled to cancel the registration of any person if

    he proves to be selling un-taxable goods or services according to the

    provisions of this Regulation.

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    Translation from Arabic Language

    b- According to a decision taken by the chairman, the registration of any

    person shall be cancelled if the registered person files an application for

    canceling his registration, because he is not obliged to register in

    accordance with the provisions of this Regulation. Canceling the

    registration shall go into effect towards the end of the tax period during

    which he filed this application.

    c- The person whose registration has been cancelled according to the

    provisions of clauses (a) and (b) of this Article pledges to file a final tax

    declaration and to pay the tax and any other dues to the Authority

    (ASEZA) on the specified date for such.

    Article 14:

    a-

    1- The registered person who is bound to pay the sales tax on the goods and

    services should file to the Authority a bimonthly declaration of his sales

    including goods and services indicating their value, along with the tax

    amount accrued. The two-month term shall be considered a single tax

    period.

    2- The registered person who is bound to pay the special tax should submit

    to the Authority (ASEZA) a monthly declaration in relation to the value

    of his sales of goods subject to the special tax along with the amount of

    the tax accrued. The one-month term shall be considered a single tax

    period.

    b-

    1- At any rate, the registered person pledges to file the declaration using the

    form approved by the Authority (ASEZA) for each tax period including

    any period in which no sales have been made. The declaration may be in

    writing or may use the information and data processing method.

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    Translation from Arabic Language

    2- The registered person pledges to pay the due sales tax on goods and

    services during the month subsequent to the expiry of the tax period. The

    chairman may grant the registered person for this purpose an additional

    term not exceeding one month.

    3- The registered person pledges to pay the due special tax in twenty-one

    days following the expiry of the tax period.

    c-

    1- In the event that the register person’s declaration turns out to be faulty,

    the registered person may submit to the Authority (ASEZA) a notice to

    that effect in writing. In this case, this shall not be considered a violation

    by the registered person of this Regulation unless the Authority (ASEZA)

    has already detected such fault ahead of him. In such a case, the registered

    person pledges to pay the difference between the amount he has already

    paid and the tax accrued along with a fine for delayed payment of tax per

    week or part thereof owing to this fault.

    2- The amended declaration shall be subject to the same provisions and

    procedures as those of the original declaration. However, the registered

    person shall not be entitled to change the declaration already amended

    according to the provisions of this clause.

    Article 15:

    a- The registered person pledges to do the following:

    1- Issue a tax invoice for selling taxable goods or services provided that the

    contents of this invoice shall be identified according to instructions issued

    for this purpose.

    2- Keep regular accounting records and books in which the registered person

    shall list the operations carried out. The registered person should retain

    these records and invoices mentioned in Clause (a) of this Article for five

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    Translation from Arabic Language

years subsequent to the expiry of the fiscal year in which the notes within

    the records were written.

    b- The limits, rules, procedures, records, and their alternatives

    including equipment, calculators, or invoices which the registered

    person to keep should be determined along with the data which he

    is supposed to include within these invoices and the documents

    which he should retain according to instructions issued for this

    purpose.

    General Provisions:

    Article 16: The tax accrued or amounts due according to the provisions of the

    Law, this Regulation, and the General Sales Tax Law shall be

    considered public funds to be collected according to the Law of

    Collecting State Funds in effect. The chairman or whoever he

    designates for this purpose shall exercise all the authorities vested,

    according to this Law, in the Administrative Governor and the State

    Funds Collection Committee.

    Article 17:Apart from the cases mentioned in this Regulation and the

    instructions issued according to it or by virtue of the Law, the

    provisions of the General Sales Tax Law, and the Regulations and

    Instructions issued according to it, shall apply in the Zone.

    Article 18: According to a memorandum of understanding to be held between

    the Authority (ASEZA) and the Income and Sales tax Department,

    tax-related matters shall be regulated including:

    a- Procedures concerning the implementation of the two provisions:

    (2) and (3) of Article (37) of the Law.

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    Translation from Arabic Language

    b- Procedures for Tax remission from the Authority (ASEZA) to the

    Income and Sales Tax Department.

    c- Unification of instructions implemented within the Authority

    (ASEZA) and Customs Area and simplification of their

    implementation procedures.

    d- Conducting a joint study of any amendment that may involve tax-

    related information.

    e- Procedures related to implementing the provisions of the two

    Articles (27) and (41) of the Law and Article (12) of this

    Regulation.

    Article 19:

    a- The Board shall issue the instructions needed for implementing the

    provisions of this Regulation including the following:

1- Determine the services charges which the Authority (ASEZA) collects in

    return for the services provided by it according to the provisions of this

    Regulation.

    2- Procedures for identifying persons’ places of residence in order to

    implement the provisions of this Regulation.

    3- Instructions related to invoices, books, and records.

    4- Principles governing the use of electronic methods for correspondence

    and tax payments.

    5- Provisions, principles, and conditions related to collecting and returning

    taxes.

    6- Groups exempted from registration for the sales tax on goods and

    services.

    7- Tax registration application forms, the data to be included therein,

    conditions, rules, periods, advertisements, and procedures related to

    registration for the sales tax on goods and services along with the

    certificate to be issued.

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    Translation from Arabic Language

    b- According to the authorities vested in him by law, the chairman

    shall issue the instructions needed for implementing the provisions

    of this Regulation pertaining to the sales tax.

    c- Instructions issued according to this Regulation shall be published

    in the Official Gazette.

Article 20: The Regulation “Sales Tax on Goods and Services Within the Aqaba

    Special Economic Zone No. 5 for the Year 2001” shall be cancelled,

    provided that the instructions issued according to it shall remain in

    effect until they are cancelled or replaced in accordance with the

    provisions of this Regulation.

    Faisal Ibn Al Hussein

    31.05.2005

    Table No. (1)

    Goods and Services Subject to the Sale Tax on Goods and Services

    No. of Goods Goods or Services or Services

    1. Men’s suits and women’s clothes according to their classification

    in chapter 61 and 62 of the customs tariffs. 2. Perfumes and cosmetic according to their classification in chapter

    33 of the customs tariffs.

    3. The following electrical appliances:

    a- Hair driers.

    b- Shaving machines.

    c- Clothes iron.

    d- Telephones (except mobile phones).

    e- Automatic pagers.

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