Universal Service Obligation (USO) Levy
Recording the mandatory contribution to the national telecommunications USO fund.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Regulatory Levy — USO Expense | Expense (+) | 120,000.00 | - |
| USO Levy Payable (Regulator) | Liability (+) | - | 120,000.00 |
💡 Accountant's Note
Most countries require operators to contribute to a USO fund that subsidizes connectivity in underserved areas. In Jordan, the TRC administers this. The levy is typically a percentage of gross revenues.
Practitioner & Systems Framework
💻 ERP Architecture
The USO levy is calculated quarterly (or as required by the TRC) as a percentage of the operator's qualifying gross revenue, as defined in the telecommunications law. The calculation is prepared by the regulatory affairs and finance teams, reviewed for completeness, and posted as an expense and payable in the GL. The levy is remitted to the TRC within the stipulated timeframe. Some operators are eligible for USO levy credits if they have invested in qualifying rural coverage projects — these credits reduce the net levy payable.
⚠️ Audit Flags
Auditors confirm that the USO levy base is calculated correctly per the TRC's prescribed definition of qualifying revenue (which may differ from accounting revenue). Test the levy rate applied against the current TRC determination. Confirm timely remittance. Assess eligibility for USO levy credits (rural coverage investments) and verify that credits claimed are supported by qualifying capital expenditure evidence. Disclose the USO levy separately in the financial statements as a regulatory levy.
📄 Required Documentation
TRC USO levy determination (rate and base definition), qualifying revenue calculation, USO levy calculation workings, TRC remittance receipt, levy credit application (if applicable), supporting capex evidence for credits, and financial statement disclosure of regulatory levies.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.