AMMAN — The Income and Sales Tax Department (ISTD) on Tuesday dismissed reports by several news outlets regarding the Cabinet’s decision on taxing mutual funds as inaccurate and misleading.
The Cabinet’s decision aims to encourage the establishment of mutual funds by clarifying the exemptions and benefits they enjoy, in line with a legal opinion issued by the Legislation and Opinion Bureau, the ISTD said.
The department added that profits earned by mutual funds from their holdings in companies and enterprises are exempt from income tax, under existing law. At the same time, the funds are subject to a fixed and final income tax of 8 per 10,000 on share transactions, as specified in current regulations.
The ISTD stressed that this rate is definitive and does not fall under the general income tax rate outlined in Article 11 of the Income Tax Law. It also emphasised that no new tax has been imposed, noting that any introduction or amendment of taxes can only occur through legislation, a process that has not taken place.
Reaffirming its commitment to transparency, the department urged media outlets to verify information directly with official sources to ensure accurate reporting of government decisions.
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