Tax Knowledge Center
Explore our verified library of Tax transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
Recording VAT Input Tax in Jordan
How to record Value Added Tax (VAT) on local purchases and expenses for Jordanian companies.
Foreign Currency Exchange Gain
Recording a gain when settling a foreign currency invoice at a favorable rate.
Collection of Sales Tax (VAT Output)
Recording a sale that includes sales tax (VAT) collected from a customer on behalf of the government.
End of Service Benefit (EOSB) Provision
Accruing the liability for employee severance pay as required by Middle Eastern labor laws.
Zakat Provision (Saudi Arabia/GCC)
Accruing the estimated Zakat liability for a company operating in the GCC.
Remitting Sales Tax (VAT) to Authorities
Paying the net tax owed (Output - Input) to the tax department.
Monthly Social Security (SSC) Contribution
Recording the company's portion and the employee's deduction for Social Security in Jordan.
Annual Employee Health Insurance Payment
Paying the yearly premium for staff medical insurance (Jordan/GCC).
Recording an Exempt Sale (0% VAT)
Recording revenue for products or services that are legally exempt from Sales Tax.
Employee Income Tax Withholding (Jordan)
Recording the deduction of income tax from an employee's gross salary based on Jordan's tax brackets.
Corporate Income Tax Provision
Accruing the estimated corporate tax on profits at the end of the fiscal year.
Customs Duties & Clearing Fees on Imports
Capitalizing the cost of customs duties and port clearing fees into the value of imported inventory.
Government Fines & Penalties (Non-Deductible)
Recording a traffic fine or late filing penalty that cannot be used to reduce taxes.
Recognition of Deferred Tax Liability
Accounting for the timing difference between accounting depreciation and tax depreciation (Advanced).
Rent Payment with Withholding Tax (Jordan)
Recording a rent payment to an individual landlord where 5% tax is deducted at source.
Dividend Payment with Withholding Tax
Paying a dividend to shareholders and withholding the required government tax (Common in KSA/GCC).
Receipt of VAT Refund from Government
Recording the cash received from the ISTD (Jordan) after a successful tax refund claim.
VAT Reverse Charge on Imported Services
Accounting for VAT on services purchased from a foreign vendor (e.g., Google Ads or a consultant in Europe).
Actual Payment of Zakat (Saudi/GCC)
The cash outflow when paying the annual Zakat liability to the tax authority (ZATCA).
Research & Development (R&D) Tax Credit
Recording a government tax rebate for qualifying innovation and development costs.
Deferred Tax Asset (Tax Loss Carryforward)
Recognizing a tax asset because the company had a loss this year that can reduce taxes in future profitable years.
Purchase of Carbon Credits (Offsets)
Recording the cost of buying carbon credits to offset the company's environmental footprint.
Government Solar Energy Incentive
Recording a tax credit or cash grant received for installing renewable energy systems.
VAT Audit Penalty (Non-Deductible)
Recording a penalty issued by the ISTD (Jordan) for an error in a previous VAT filing.
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