Tax Dep’t: 132,000 Companies Involved in Tax Evasion

Jordanian Dinars - (Archives/Expressive)
Jordanian Dinars - (Archives/Expressive)

اضافة اعلان

AMMAN —AlGhad— Around 132,000 registered and active companies practice tax evasion, a study by the Income and Sales Tax Department (ISTD) has found, as the combined annual income tax of these companies does not exceed JOD60 million.

According to the study, the average income tax revenues from each of these companies does not exceed JOD455 in average annually.

The study, sheds light on the risks of tax evasion in Jordan, its repercussions and the dire need to solve the problem.

Amon these companies are 113,000 general partnership and 18,600 limited partnership companies.

One-third of general partnership and limited partnership companies are inactive and currently being unlisted from the companies register at the Companies Control Department, the study indicated.

The findings of the study accord with those reached by a Jordan Strategy Forum (JSF).

The JSF study showed that the country’s low tax revenues are attributed on one hand to the low amounts paid by professionals and small- and medium-sized enterprises (SMEs). On the other, tax evasion and weak assessment and collection mechanisms amount for a significant amount of the lost revenues.

The JSF study showed that total tax revenues from 150,000 professional jobs and SMEs in 2016 reached some JOD75 million, “a very small figure compared to the scope of their activities”.

(The Jordan Times)