Amman: Director General of the Income and Sales Tax Department (ISTD), Hussam Abu Ali, emphasized that no entity in the Kingdom has the authority to grant exemptions from income tax, in accordance with Article 78 of the Income Tax Law. Speaking during a Government Communication Forum on Tuesday focused on the national e-invoicing system and tax reforms, Abu Ali stated that all tax violations will be addressed strictly under the law without disclosing the names of companies or individuals involved in tax evasion or non-compliance.
According to Jordan News Agency, Abu Ali clarified that the department has signed memorandums of understanding with the Jordan Medical Association, the Jordan Dental Association, and the Jordan Bar Association, which do not include any form of tax exemption. Members are required to join the national invoicing system, with a two-month grace period granted. Abu Ali highlighted the ISTD's transformation into a digital authority, noting that the number of electronic services offered to taxpayers has increased from 17 to 65, covering all core tax services. This digital shift enables faster and easier processing of transactions.
The department has been digitally linked with 34 government agencies to strengthen the taxpayer information network, following legislative amendments that shifted the burden of proof from the taxpayer to the auditor. He also revealed the department's development of an AI-powered audit system for reviewing declarations submitted by companies, establishments, individuals, and employees. This makes the department the first government body and the first tax administration in the Arab world to use artificial intelligence in technical tax operations.
Additionally, the department has completed the development of a digital oversight program for cigarette production facilities subject to special taxes. Legal and procedural frameworks for monitoring these factories have also been updated. Cigarette production in Jordan is now only permitted under digital monitoring conditions. If these systems are not operational, production must halt. The monitoring system includes unique digital markers on products, allowing the detection of smuggled goods in the market.
After implementing digital oversight for cigarette factories, the department has started the second phase: applying similar digital controls to alcohol production facilities, which is currently underway. Abu Ali also introduced the "Golden List" program, designed for taxpayers who have complied with tax laws over the past five years. Members receive prioritized service and enhanced support.
The department has separated the objection committees from the audit teams, placing them under a different directorate to boost taxpayer confidence. Additional reforms include revised seizure procedures, a newly adopted code of professional conduct, a restructured organizational chart to improve audit efficiency, and a field outreach program for tax awareness.
Abu Ali reviewed international best practices adopted by the department, such as implementing transfer pricing regulations, standardized exemption and incentive criteria, and the shift from a sales-based to a supply-based taxation model to close legislative loopholes previously exploited for tax avoidance. Discussing the national e-invoicing program, Abu Ali noted it consists of two phases. The first is the legislative framework introduced under the amended Income Tax Law No. 38 of 2018, which mandates issuing official invoices for all goods and services sold.
Under this law, Regulation No. 34 of 2019 on invoicing was enacted, along with executive instructions. All invoice formats-traditional, computerized, and electronic-are recognized, with the national e-invoicing platform serving as the sole reference for transmitting invoice data to the department. He highlighted key benefits of joining the national invoicing system, including enhanced trust between taxpayers and the department, compliance with tax laws, elimination of paper invoices, faster service, standardized billing practices, and greater transparency in economic sectors.
Some businesses are exempt from mandatory invoicing, such as tailoring shops, dairies, bakeries, traditional restaurants, small groceries, and home-based crafts with annual sales below JD75,000 or revenues below JD30,000. Abu Ali stated that the department met with all professional unions and economic sectors to confirm that no group is exempt from the program, regardless of business size.
The system also requires government institutions to purchase goods and services only from entities that comply with the e-invoicing platform, necessitating amendments to related regulations. Expenses will only be tax-deductible if supported by an electronic invoice. Secretary-General of the Ministry of Government Communication, Zaid Nawaiseh, affirmed that the tax department has raised awareness, developed staff capabilities, and adopted global best practices in tax administration. He noted that the national e-invoicing system is a key component of broader tax and economic reforms aimed at increasing transparency and streamlining financial procedures.