Keep Us Strong WikiLeaks logo

Currently released so far... 251287 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AEMR ASEC AMGT AE AS AMED AVIAN AU AF AORC AGENDA AO AR AM APER AFIN ATRN AJ ABUD ARABL AL AG AODE ALOW ADANA AADP AND APECO ACABQ ASEAN AA AFFAIRS AID AGR AY AGS AFSI AGOA AMB ARF ANET ASCH ACOA AFLU AFSN AMEX AFDB ABLD AESC AFGHANISTAN AINF AVIATION ARR ARSO ANDREW ASSEMBLY AIDS APRC ASSK ADCO ASIG AC AZ APEC AFINM ADB AP ACOTA ASEX ACKM ASUP ANTITERRORISM ADPM AINR ARABLEAGUE AGAO AORG AMTC AIN ACCOUNT ASECAFINGMGRIZOREPTU AIDAC AINT ARCH AMGTKSUP ALAMI AMCHAMS ALJAZEERA AVIANFLU AORD AOREC ALIREZA AOMS AMGMT ABDALLAH AORCAE AHMED ACCELERATED AUC ALZUGUREN ANGEL AORL ASECIR AMG AMBASSADOR AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL ADM ASES ABMC AER AMER ASE AMGTHA ARNOLDFREDERICK AOPC ACS AFL AEGR ASED AFPREL AGRI AMCHAM ARNOLD AN ANATO AME APERTH ASECSI AT ACDA ASEDC AIT AMERICA AMLB AMGE ACTION AGMT AFINIZ ASECVE ADRC ABER AGIT APCS AEMED ARABBL ARC ASO AIAG ACEC ASR ASECM ARG AEC ABT ADIP ADCP ANARCHISTS AORCUN AOWC ASJA AALC AX AROC ARM AGENCIES ALBE AK AZE AOPR AREP AMIA ASCE ALANAZI ABDULRAHMEN ABDULHADI AINFCY ARMS ASECEFINKCRMKPAOPTERKHLSAEMRNS AGRICULTURE AFPK AOCR ALEXANDER ATRD ATFN ABLG AORCD AFGHAN ARAS AORCYM AVERY ALVAREZ ACBAQ ALOWAR ANTOINE ABLDG ALAB AMERICAS AFAF ASECAFIN ASEK ASCC AMCT AMGTATK AMT APDC AEMRS ASECE AFSA ATRA ARTICLE ARENA AISG AEMRBC AFR AEIR ASECAF AFARI AMPR ASPA ASOC ANTONIO AORCL ASECARP APRM AUSTRALIAGROUP ASEG AFOR AEAID AMEDI ASECTH ASIC AFDIN AGUIRRE AUNR ASFC AOIC ANTXON ASA ASECCASC ALI AORCEUNPREFPRELSMIGBN ASECKHLS ASSSEMBLY ASECVZ AI ASECPGOV ASIR ASCEC ASAC ARAB AIEA ADMIRAL AUSGR AQ AMTG ARRMZY ANC APR AMAT AIHRC AFU ADEL AECL ACAO AMEMR ADEP AV AW AOR ALL ALOUNI AORCUNGA ALNEA ASC AORCO ARMITAGE AGENGA AGRIC AEM ACOAAMGT AGUILAR AFPHUM AMEDCASCKFLO AFZAL AAA ATPDEA ASECPHUM ASECKFRDCVISKIRFPHUMSMIGEG
ETRD ETTC EU ECON EFIN EAGR EAID ELAB EINV ENIV ENRG EPET EZ ELTN ELECTIONS ECPS ET ER EG EUN EIND ECONOMICS EMIN ECIN EINT EWWT EAIR EN ENGR ES EI ETMIN EL EPA EARG EFIS ECONOMY EC EK ELAM ECONOMIC EAR ESDP ECCP ELN EUM EUMEM ECA EAP ELEC ECOWAS EFTA EXIM ETTD EDRC ECOSOC ECPSN ENVIRONMENT ECO EMAIL ECTRD EREL EDU ENERG ENERGY ENVR ETRAD EAC EXTERNAL EFIC ECIP ERTD EUC ENRGMO EINZ ESTH ECCT EAGER ECPN ELNT ERD EGEN ETRN EIVN ETDR EXEC EIAD EIAR EVN EPRT ETTF ENGY EAIDCIN EXPORT ETRC ESA EIB EAPC EPIT ESOCI ETRB EINDQTRD ENRC EGOV ECLAC EUR ELF ETEL ENRGUA EVIN EARI ESCAP EID ERIN ELAN ENVT EDEV EWWY EXBS ECOM EV ELNTECON ECE ETRDGK EPETEIND ESCI ETRDAORC EAIDETRD ETTR EMS EAGRECONEINVPGOVBN EBRD EUREM ERGR EAGRBN EAUD EFI ETRDEINVECINPGOVCS EPEC ETRO ENRGY EGAR ESSO EGAD ENV ENER EAIDXMXAXBXFFR ELA EET EINVETRD EETC EIDN ERGY ETRDPGOV EING EMINCG EINVECON EURM EEC EICN EINO EPSC ELAP ELABPGOVBN EE ESPS ETRA ECONETRDBESPAR ERICKSON EEOC EVENTS EPIN EB ECUN EPWR ENG EX EH EAIDAR EAIS ELBA EPETUN ETRDEIQ EENV ECPC ETRP ECONENRG EUEAID EWT EEB EAIDNI ESENV EADM ECN ENRGKNNP ETAD ETR ECONETRDEAGRJA ETRG ETER EDUC EITC EBUD EAIF EBEXP EAIDS EITI EGOVSY EFQ ECOQKPKO ETRGY ESF EUE EAIC EPGOV ENFR EAGRE ENRD EINTECPS EAVI ETC ETCC EIAID EAIDAF EAGREAIDPGOVPRELBN EAOD ETRDA EURN EASS EINVA EAIDRW EON ECOR EPREL EGPHUM ELTM ECOS EINN ENNP EUPGOV EAGRTR ECONCS ETIO ETRDGR EAIDB EISNAR EIFN ESPINOSA EAIDASEC ELIN EWTR EMED ETFN ETT EADI EPTER ELDIN EINVEFIN ESS ENRGIZ EQRD ESOC ETRDECD ECINECONCS EAIT ECONEAIR ECONEFIN EUNJ ENRGKNNPMNUCPARMPRELNPTIAEAJMXL ELAD EFIM ETIC EFND EFN ETLN ENGRD EWRG ETA EIN EAIRECONRP EXIMOPIC ERA ENRGJM ECONEGE ENVI ECHEVARRIA EMINETRD EAD ECONIZ EENG ELBR EWWC ELTD EAIDMG ETRK EIPR EISNLN ETEX EPTED EFINECONCS EPCS EAG ETRDKIPR ED EAIO ETRDEC ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID ECONEINVEFINPGOVIZ ERNG EFINU EURFOR EWWI ELTNSNAR ETD EAIRASECCASCID EOXC ESTN EAIDAORC EAGRRP ETRDEMIN ELABPHUMSMIGKCRMBN ETRDEINVTINTCS EGHG EAIDPHUMPRELUG EAGRBTIOBEXPETRDBN EDA EPETPGOV ELAINE EUCOM EMW EFINECONEAIDUNGAGM ELB EINDETRD EMI ETRDECONWTOCS EINR ESTRADA EHUM EFNI ELABV ENR EMN EXO EWWTPRELPGOVMASSMARRBN EATO END EP EINVETC ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID ELTRN EIQ ETTW EAI ENGRG ETRED ENDURING ETTRD EAIDEGZ EOCN EINF EUPREL ENRL ECPO ENLT EEFIN EPPD ECOIN EUEAGR EISL EIDE ENRGSD EINVECONSENVCSJA EAIG ENTG EEPET EUNCH EPECO ETZ EPAT EPTE EAIRGM ETRDPREL EUNGRSISAFPKSYLESO ETTN EINVKSCA ESLCO EBMGT ENRGTRGYETRDBEXPBTIOSZ EFLU ELND EFINOECD EAIDHO EDUARDO ENEG ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EFINTS ECONQH ENRGPREL EUNPHUM EINDIR EPE EMINECINECONSENVTBIONS EFINM ECRM EQ EWWTSP ECONPGOVBN
KFLO KPKO KDEM KFLU KTEX KMDR KPAO KCRM KIDE KN KNNP KG KMCA KZ KJUS KWBG KU KDMR KAWC KCOR KPAL KOMC KTDB KTIA KISL KHIV KHUM KTER KCFE KTFN KS KIRF KTIP KIRC KSCA KICA KIPR KPWR KWMN KE KGIC KGIT KSTC KACT KSEP KFRD KUNR KHLS KCRS KRVC KUWAIT KVPR KSRE KMPI KMRS KNRV KNEI KCIP KSEO KITA KDRG KV KSUM KCUL KPET KBCT KO KSEC KOLY KNAR KGHG KSAF KWNM KNUC KMNP KVIR KPOL KOCI KPIR KLIG KSAC KSTH KNPT KINL KPRP KRIM KICC KIFR KPRV KAWK KFIN KT KVRC KR KHDP KGOV KPOW KTBT KPMI KPOA KRIF KEDEM KFSC KY KGCC KATRINA KWAC KSPR KTBD KBIO KSCI KRCM KNNB KBNC KIMT KCSY KINR KRAD KMFO KCORR KW KDEMSOCI KNEP KFPC KEMPI KBTR KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNPP KTTB KTFIN KBTS KCOM KFTN KMOC KOR KDP KPOP KGHA KSLG KMCR KJUST KUM KMSG KHPD KREC KIPRTRD KPREL KEN KCSA KCRIM KGLB KAKA KWWT KUNP KCRN KISLPINR KLFU KUNC KEDU KCMA KREF KPAS KRKO KNNC KLHS KWAK KOC KAPO KTDD KOGL KLAP KECF KCRCM KNDP KSEAO KCIS KISM KREL KISR KISC KKPO KWCR KPFO KUS KX KWCI KRFD KWPG KTRD KH KLSO KEVIN KEANE KACW KWRF KNAO KETTC KTAO KWIR KVCORR KDEMGT KPLS KICT KWGB KIDS KSCS KIRP KSTCPL KDEN KLAB KFLOA KIND KMIG KPPAO KPRO KLEG KGKG KCUM KTTP KWPA KIIP KPEO KICR KNNA KMGT KCROM KMCC KLPM KNNPGM KSIA KSI KWWW KOMS KESS KMCAJO KWN KTDM KDCM KCM KVPRKHLS KENV KCCP KGCN KCEM KEMR KWMNKDEM KNNPPARM KDRM KWIM KJRE KAID KWMM KPAONZ KUAE KTFR KIF KNAP KPSC KSOCI KCWI KAUST KPIN KCHG KLBO KIRCOEXC KI KIRCHOFF KSTT KNPR KDRL KCFC KLTN KPAOKMDRKE KPALAOIS KESO KKOR KSMT KFTFN KTFM KDEMK KPKP KOCM KNN KISLSCUL KFRDSOCIRO KINT KRG KWMNSMIG KSTCC KPAOY KFOR KWPR KSEPCVIS KGIV KSEI KIL KWMNPHUMPRELKPAOZW KQ KEMS KHSL KTNF KPDD KANSOU KKIV KFCE KTTC KGH KNNNP KK KSCT KWNN KAWX KOMCSG KEIM KTSD KFIU KDTB KFGM KACP KWWMN KWAWC KSPA KGICKS KNUP KNNO KISLAO KTPN KSTS KPRM KPALPREL KPO KTLA KCRP KNMP KAWCK KCERS KDUM KEDM KTIALG KWUN KPTS KPEM KMEPI KAWL KHMN KCRO KCMR KPTD KCROR KMPT KTRF KSKN KMAC KUK KIRL KEM KSOC KBTC KOM KINP KDEMAF KTNBT KISK KRM KWBW KBWG KNNPMNUC KNOP KSUP KCOG KNET KWBC KESP KMRD KEBG KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KPWG KOMCCO KRGY KNNF KPROG KJAN KFRED KPOKO KM KWMNCS KMPF KJWC KJU KSMIG KALR KRAL KDGOV KPA KCRMJA KCRI KAYLA KPGOV KRD KNNPCH KFEM KPRD KFAM KALM KIPRETRDKCRM KMPP KADM KRFR KMWN KWRG KTIAPARM KTIAEUN KRDP KLIP KDDEM KTIAIC KWKN KPAD KDM KRCS KWBGSY KEAI KIVP KPAOPREL KUNH KTSC KIPT KNP KJUSTH KGOR KEPREL KHSA KGHGHIV KNNR KOMH KRCIM KWPB KWIC KINF KPER KILS KA KNRG KCSI KFRP KLFLO KFE KNPPIS KQM KQRDQ KERG KPAOPHUM KSUMPHUM KVBL KARIM KOSOVO KNSD KUIR KWHG KWBGXF KWMNU KPBT KKNP KERF KCRT KVIS KWRC KVIP KTFS KMARR KDGR KPAI KDE KTCRE KMPIO KUNRAORC KHOURY KAWS KPAK KOEM KCGC KID KVRP KCPS KIVR KBDS KWOMN KIIC KTFNJA KARZAI KMVP KHJUS KPKOUNSC KMAR KIBL KUNA KSA KIS KJUSAF KDEV KPMO KHIB KIRD KOUYATE KIPRZ KBEM KPAM KDET KPPD KOSCE KJUSKUNR KICCPUR KRMS KWMNPREL KWMJN KREISLER KWM KDHS KRV KPOV KWMNCI KMPL KFLD KWWN KCVM KIMMITT KCASC KOMO KNATO KDDG KHGH KRF KSCAECON KWMEN KRIC
PREL PINR PGOV PHUM PTER PE PREF PARM PBTS PINS PHSA PK PL PM PNAT PHAS PO PROP PGOVE PA PU POLITICAL PPTER POL PALESTINIAN PHUN PIN PAMQ PPA PSEC POLM PBIO PSOE PDEM PAK PF PKAO PGOVPRELMARRMOPS PMIL PV POLITICS PRELS POLICY PRELHA PIRN PINT PGOG PERSONS PRC PEACE PROCESS PRELPGOV PROV PFOV PKK PRE PT PIRF PSI PRL PRELAF PROG PARMP PERL PUNE PREFA PP PGOB PUM PROTECTION PARTIES PRIL PEL PAGE PS PGO PCUL PLUM PIF PGOVENRGCVISMASSEAIDOPRCEWWTBN PMUC PCOR PAS PB PKO PY PKST PTR PRM POUS PRELIZ PGIC PHUMS PAL PNUC PLO PMOPS PHM PGOVBL PBK PELOSI PTE PGOVAU PNR PINSO PRO PLAB PREM PNIR PSOCI PBS PD PHUML PERURENA PKPA PVOV PMAR PHUMCF PUHM PHUH PRELPGOVETTCIRAE PRT PROPERTY PEPFAR PREI POLUN PAR PINSF PREFL PH PREC PPD PING PQL PINSCE PGV PREO PRELUN POV PGOVPHUM PINRES PRES PGOC PINO POTUS PTERE PRELKPAO PRGOV PETR PGOVEAGRKMCAKNARBN PPKO PARLIAMENT PEPR PMIG PTBS PACE PETER PMDL PVIP PKPO POLMIL PTEL PJUS PHUMNI PRELKPAOIZ PGOVPREL POGV PEREZ POWELL PMASS PDOV PARN PG PPOL PGIV PAIGH PBOV PETROL PGPV PGOVL POSTS PSO PRELEU PRELECON PHUMPINS PGOVKCMABN PQM PRELSP PRGO PATTY PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PGVO PROTESTS PRELPLS PKFK PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PARAGRAPH PRELGOV POG PTRD PTERM PBTSAG PHUMKPAL PRELPK PTERPGOV PAO PRIVATIZATION PSCE PPAO PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PARALYMPIC PRUM PKPRP PETERS PAHO PARMS PGREL PINV POINS PHUMPREL POREL PRELNL PHUMPGOV PGOVQL PLAN PRELL PARP PROVE PSOC PDD PRELNP PRELBR PKMN PGKV PUAS PRELTBIOBA PBTSEWWT PTERIS PGOVU PRELGG PHUMPRELPGOV PFOR PEPGOV PRELUNSC PRAM PICES PTERIZ PREK PRELEAGR PRELEUN PHUME PHU PHUMKCRS PRESL PRTER PGOF PARK PGOVSOCI PTERPREL PGOVEAID PGOVPHUMKPAO PINSKISL PREZ PGOVAF PARMEUN PECON PINL POGOV PGOVLO PIERRE PRELPHUM PGOVPZ PGOVKCRM PBST PKPAO PHUMHUPPS PGOVPOL PASS PPGOV PROGV PAGR PHALANAGE PARTY PRELID PGOVID PHUMR PHSAQ PINRAMGT PSA PRELM PRELMU PIA PINRPE PBTSRU PARMIR PEDRO PNUK PVPR PINOCHET PAARM PRFE PRELEIN PINF PCI PSEPC PGOVSU PRLE PDIP PHEM PRELB PORG PGGOC POLG POPDC PGOVPM PWMN PDRG PHUMK PINB PRELAL PRER PFIN PNRG PRED POLI PHUMBO PHYTRP PROLIFERATION PHARM PUOS PRHUM PUNR PENA PGOVREL PETRAEUS PGOVKDEM PGOVENRG PHUS PRESIDENT PTERKU PRELKSUMXABN PGOVSI PHUMQHA PKISL PIR PGOVZI PHUMIZNL PKNP PRELEVU PMIN PHIM PHUMBA PUBLIC PHAM PRELKPKO PMR PARTM PPREL PN PROL PDA PGOVECON PKBL PKEAID PERM PRELEZ PRELC PER PHJM PGOVPRELPINRBN PRFL PLN PWBG PNG PHUMA PGOR PHUMPTER POLINT PPEF PKPAL PNNL PMARR PAC PTIA PKDEM PAUL PREG PTERR PTERPRELPARMPGOVPBTSETTCEAIRELTNTC PRELJA POLS PI PNS PAREL PENV PTEROREP PGOVM PINER PBGT PHSAUNSC PTERDJ PRELEAID PARMIN PKIR PLEC PCRM PNET PARR PRELETRD PRELBN PINRTH PREJ PEACEKEEPINGFORCES PEMEX PRELZ PFLP PBPTS PTGOV PREVAL PRELSW PAUM PRF PHUMKDEM PATRICK PGOVKMCAPHUMBN PRELA PNUM PGGV PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PIND PTEP PTERKS PGOVJM PGOT PRELMARR PGOVCU PREV PREFF PRWL PET PROB PRELPHUMP PHUMAF PVTS PRELAFDB PSNR PGOVECONPRELBU PGOVZL PREP PHUMPRELBN PHSAPREL PARCA PGREV PGOVDO PGON PCON PODC PRELOV PHSAK PSHA PGOVGM PRELP POSCE PGOVPTER PHUMRU PINRHU PARMR PGOVTI PPEL PMAT PAN PANAM PGOVBO PRELHRC

Browse by classification

Community resources

courage is contagious

Viewing cable 10AMMAN218, Government Enacts Controversial Tax Laws to Streamline and

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #10AMMAN218.
Reference ID Created Released Classification Origin
10AMMAN218 2010-01-21 10:23 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Amman
VZCZCXRO3910
RR RUEHLMC RUEHMA
DE RUEHAM #0218/01 0211023
ZNR UUUUU ZZH
R 211023Z JAN 10
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 6733
INFO RUEHAD/AMEMBASSY ABU DHABI 0011
RUEHGB/AMEMBASSY BAGHDAD 6354
RUEHLB/AMEMBASSY BEIRUT 3154
RUEHEG/AMEMBASSY CAIRO 0001
RUEHDM/AMEMBASSY DAMASCUS 4308
RUEHMA/AMEMBASSY MALABO
RUEHRH/AMEMBASSY RIYADH 2268
RUEHTV/AMEMBASSY TEL AVIV 2005
RUEHTU/AMEMBASSY TUNIS 1077
RUEHJI/AMCONSUL JEDDAH 0950
RUEHJM/AMCONSUL JERUSALEM 5759
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHLMC/MILLENIUM CHALLENGE CORP WASHDC
UNCLAS SECTION 01 OF 03 AMMAN 000218 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ELA AND EEB 
STATE PASS USAID 
MALABO FOR MOSS 
TUNIS FOR FSI STUDENT WONG 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PGOV KMCAJO
SUBJECT:  Government Enacts Controversial Tax Laws to Streamline and 
Lower Rates, and Empower Tax Authorities 
 
Refs: A) 09 Amman 2673 
- B) 09 Amman 2572 
- C) 09 Amman 2562 
- D) 08 Amman 1834 
 
1. (SBU) Summary:  The Government of Jordan enacted recently two new 
tax laws to lower income tax rates and grant greater powers to tax 
authorities.  The laws, which will remain in force until a new 
parliament is elected and votes on them, represent the first notable 
achievement of the new government and were well received by the 
business community and individuals.  As of January 1, 2010, under 
the Temporary Income Tax Law, families with incomes less than 
$34,000 are exempt from taxes.  Corporate income taxes, as well as 
taxes for telecommunications companies, financial service providers, 
and banks were also lowered.  The Temporary General Sales Tax Law 
deals with administrative matters, the collection mechanism, and the 
appeals process.  The new laws also provide more power and authority 
to the Director of the Tax Department, but with tax evasion not 
considered a felony, the penalties remain an insufficient deterrent. 
 The positive effects of the new laws, however, will not be seen 
before 2011.  The first year of this new tax program was intended to 
be revenue neutral, but due to a difficult budgetary situation, the 
GOJ anticipates that tax revenues will actually decline in 2010, 
which it hopes to offset by collecting increased sales taxes.  USG 
technical assistance was critical to these important changes to the 
tax structure.  End summary. 
 
Tax Reform to Reduce Poverty and Attract Investment 
--------------------------------------------- ------ 
 
2. (SBU) Under instructions from the King, successive Jordanian 
governments have worked on tax reform for almost five years with the 
goals of encouraging investment, alleviating poverty, and 
eliminating tax disparities by simplifying the tax code, increasing 
tax collection efficiency, and curbing evasion.  Upon publication in 
the Official Gazette on December 30, 2009, the GOJ enacted two 
temporary laws that achieve some of these goals.  The combined 
statutes of the new Temporary Income Tax Law and new Temporary 
General Sales Tax Law, legislation that had been viewed as 
controversial and contributed to the stand-off and ultimate 
dismissal of the former cabinet and parliament, rationalize 
individual income tax rates, simplify the tax structure for many 
lower and middle income families, eliminate loopholes used by 
individuals and businesses to reduce or avoid their tax burdens, 
cancel a number of indirect taxes, and give new authorities to the 
Tax Department and the cabinet (ref C). 
 
3.  (SBU) Musa Mawazreh, Director General of the Tax Department, is 
proud of the changes and told EconSpec the new laws were a top 
priority for the new government, commenting that officials worked 
around-the-clock for two weeks to complete the legislation. 
Mawazreh speculated the temporary laws, because the GOJ incorporated 
several of the changes desired by the previous parliament, would 
pass through the next parliament smoothly and become permanent. 
(Note:  Temporary laws are passed when parliament is dissolved or 
not in session.  Once a new parliament is in place, temporary laws 
must be presented for approval, but they remain in force until 
parliament takes action (ref D).  End note.)  Much of the private 
sector also praised the changes.  Imad Marar, CEO of the National 
Bank of Abu Dhabi, scheduled to open soon in Jordan, welcomed the 
changes on both a professional and personal level.  He described the 
new laws as simple and just, explaining they narrowed the gaps 
between different tax payers and sectors. 
 
Lower, but Standardized Rates Across the Board 
--------------------------------------------- - 
 
4. (U) Both individuals and companies will benefit from the 
legislative changes.  According to the new Income Tax Law, the first 
$17,000 of an individual's income and the first $34,000 of a 
family's income are tax free.  Additional income is taxed at 7% for 
 
AMMAN 00000218  002 OF 003 
 
 
the next $17,000 and 14% thereafter.  This is a much simpler, 
clearer, and fairer formula that eliminates exemptions that 
taxpayers previously could claim for spouses, children, parental 
support, rent and mortgages, educational expenses, universities, and 
healthcare.  Corporate income tax has been reduced to 14%, down from 
the 15% or 25% previously paid depending on the type of company. 
Telecommunications and financial service providers are now taxed at 
24%, and banks at 30% instead of 25% and 35%, respectively.  While 
the law eliminates many exemptions, the cabinet gained the right to 
grant them on a case-by-case basis. 
 
Welcomed Changes Amid Compromises 
--------------------------------- 
 
5. (SBU) The GOJ made some compromises and incorporated several of 
the previous parliament's recommended suggestions.  The government's 
initial draft laws proposed that corporate income for all sectors be 
taxed at 12% and banks at 25%.  The previous parliament refused, a 
decision that, in hindsight, was beneficial to the GOJ given the 
current budget situation (ref A).  The former parliament also 
refused to tax the agricultural sector.  The new law treats most 
farmers as individuals, exempting a good portion of their income, 
and after an exemption on the first $75,000 of income, taxes 
agricultural companies at the 14% corporate rate.  Another 
compromise that the GOJ accepted relates to pension income and 
end-of-service indemnities.  The government opted to temporarily 
exempt, in addition to the $17,000 or $34,000 of tax-free income, 
taxes on the first $5,600 of pension income as well as on 50% of 
end-of-service benefits.  Mawazreh elaborated that within two years, 
the GOJ anticipates amending the relevant articles to remove most 
such exemptions.  He added this approach was used by previous 
governments for similar controversial matters and proved successful 
in obtaining public support. 
 
Majority of Indirect Taxes Cancelled 
------------------------------------ 
 
6. (SBU) The new laws repeal numerous previous laws that imposed 
approximately 100 different kinds of taxes, which, in effect, 
hindered Jordan's efforts to compete for foreign direct investment. 
The new laws strive to reverse this situation and annul a range of 
taxes, including those on the value of imported products, 
properties, income tax, and livestock used for social purposes as 
well as indirect taxes to compensate tribal sheikhs and military 
army personnel and to combat diseases such as HIV, malaria, and 
tuberculosis.  Also repealed were the youth tax, cultural tax, 
municipality tax, and handicapped tax which supported these social 
sectors. 
 
More Power to Cabinet and Tax Department 
---------------------------------------- 
 
7. (U) The new Income Tax Law provides the cabinet with the 
authority to reduce gradually taxes by one percent each year to 
reach targeted rates of 5% (down from 7%) for lower income 
individuals and 10% (from 14%) for the higher income bracket.  There 
are also targets to eventually halve corporate income tax to 10% and 
reduce to 20% the tax for telecommunications companies, and 
financial service providers and banks, down from 24% and 30%m 
respectively.  Additionally, the Income Tax Law provides 
considerable power to the Director General of the Tax Department and 
his staff.  The Director General, with the Finance Minister's 
approval, can prevent tax scofflaws from traveling, even without a 
court ruling.  He also has the power to confiscate property and 
funds if amounts due to the Tax Department exceed $2,800, issue 
penalties for delays in settling required taxes, and most 
significantly, settle tax matters outside of court. 
 
8. (SBU) Comment:  Working closely with the Ministry of Finance, a 
USAID project helped to prepare first an analysis of the tax system 
in Jordan and then the comprehensive tax reform proposal.  USAID 
 
AMMAN 00000218  003 OF 003 
 
 
also helped draft the new tax code, assisted the Finance Ministry's 
macro-fiscal unit in estimating the impact of draft legislation, and 
supported the Ministry's public outreach efforts.  The end result 
represents an unquestionable step in the right direction.  The laws 
alone, however, will not solve all of Jordan's problems.  Better 
enforcement is needed to pursue evaders, and greater coordination is 
required between the Tax Department and the government entities 
crucial to taxation.  Collaboration is a must because although the 
tax laws increased penalties on evaders, the crime is not considered 
a felony, and with a maximum penalty of $700 and one year in jail, 
the deterrent is largely considered insufficient. 
9. (SBU) Comment continued:  The new laws, intended to be revenue 
neutral in the first year, are also likely to negatively affect tax 
revenues in 2010 because of reduced income tax revenue (more than 
98% of public and private sector employees earn less than $34,000 a 
year) and because of poor corporate performance in 2009 as a result 
of the global financial crisis.  To compensate for this income loss, 
the government will most likely reinstate general sales taxes, 
waived in 2008, on items such as cement and iron.  To generate 
income, the GOJ has already added two items to the special tax 
schedule:  oil derivatives and airline tickets for travel outside of 
Jordan.  Deputy Governor of the Central Bank Kholoud Saqqaf further 
speculated that with these taxes and increases in other sales taxes, 
"Jordan would be alright" on the tax front because individuals and 
companies can avoid income tax, but consumers have no choice but to 
pay sales tax. 
 
Visit Amman's Classified Website at 
http://diplopedia.state.sgov.gov/index.php?ti tle 
=Embassy_Amman 
 
Beecroft