Jordan Country Profile
Tax Administration
Individual Corruption
According to Global Integrity 2009, the use of wasta in the collection of income taxes discriminates against low income households and those who lack connections to influential people in the system.
Business Corruption
According to Global Integrity 2009, the collection of taxes is flawed with wasta, favouritism, and the misuse of political power. Small companies lacking connections to people with political influence are often subjected to an arbitrary application of the Value Added taxes. On the other hand, companies with the proper political connections will often not be held accountable for tax evasion and might often be exempted from paying taxes.
Political Corruption
Freedom House 2010 reports that the tax administration is to some extent subject to political interference.
Frequency
The World Bank & IFC: Doing Business 2011:
- A company spends an average of 101 hours per year making 26 separate tax payments at a total tax rate of 31.2% of profits.
World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives perceive tax regulations and tax rates as the two most problematic factors for doing business in Jordan.
The World Bank & IFC: Enterprise Surveys 2006:
- Only 1% of companies state that they are expected to give gifts when meeting with tax inspectors.
