Circular Regarding Import Stamp Fees on Guarantees No. (15179/4/2/10) dated 2015/12/8

In the Name of Allah, the Most Gracious, the Most Merciful

Number: 10179 / 4/2/10
Date: 26 / 5 / 1437 AH
Corresponding to: 8 / 12 / 2015 AD

Circular to Banks Operating in the Kingdom

Greetings,

We attach herewith a copy of the letter of His Excellency the Minister of Finance No. (28170/2/2/9) dated 2015/11/19, for your action according to the proper procedures.

Please accept the highest regards,

The Governor
Dr. Ziad Friez

Attached -
Copy of His Excellency the Minister of Finance.

---

First:

The text of Item (3) of Paragraph (c) of Article (1) of the Schedule of Transactions Subject to Fees No. (1) attached to the Import Stamp Fees Law No. 20 of 2001 stipulates that an amount of three dinars shall be collected for every one thousand dinars or any fraction thereof from contracts granting facilities, guarantees, bills of exchange, drafts, acceptances, and commitment letters exceeding one thousand dinars. The fees are collected upon issuance.

b) The text of Article (2) of the Schedule of Transactions Subject to Fees No. (1) attached to the Import Stamp Fees Law No. 20 of 2001 stipulates that an amount of five dinars shall be collected on the transaction of general terms for discount, guarantees, and credits.

Second:

a) A general terms transaction for Standby Letters of Credit shall be issued instead of issuing guarantees, despite the fact that the body of the issued Standby Letter of Credit transaction includes a commitment to pay the amount.

b) Issuing a (Standby Letter of Credit) instead of a guarantee results in the failure to collect treasury rights from the issuance of guarantees, which amounts to three dinars for every one thousand dinars or any fraction thereof, and instead paying five dinars on the entire transaction.

---

Third:

Whereas import stamp fees are imposed on the issuance of transactions based on their essence and content, regardless of the heading of these transactions, therefore, the general terms transaction issued in place of a guarantee, which contains in its body the substance of the commitment, is subject to the proportional fees amounting to three dinars for every one thousand dinars or any fraction thereof, and not to the fixed fees amounting to five dinars.

In light of the above, and based on the provisions of Article (21) of the Import Stamp Fees Law No. (20) of 2001, I request Your Excellency kindly to instruct all banks to collect import stamp fees on transactions according to the content of these transactions, and the resulting collection of proportional stamp fees on guarantees or those issued in place of guarantees at a rate of three dinars for every one thousand dinars or any fraction thereof, in order to avoid the legal penalties stipulated in the Law.

Please accept the highest regards,

Omar Malhas
Minister of Finance

---

info@cbj.gov.jo www.cbj.gov.jo Website: 1776171, 1776665 Fax: 27-301 Phone: 11115 Amman - Jordan P.O. Box 77

www.mof.gov.jo Website: 1776171, 1776665 Fax: 27-301 Phone: 11115 Amman - Jordan P.O. Box 77