The following information is related to the taxpayer Sami, for the year 2020:

1. Sami is a resident Jordanian natural person who works as a general manager for a commercial company.
2. He has two children, and his wife is resident and non-working.
3. His monthly salary is JD 18,500, and the company also paid an additional thirteenth and fourteenth salary.
4. The educational expenses for his first child during 2020 are 1,250 JOD.
5. The medical expenses for the other chilled during 2020 are 1,600 JOD.
6. The company provided Sami with a rented flat for a private family accommodation, its monthly rent is JD 1,750. He paid 20 percent of the apartment's rent.
7. In addition to his monthly salary, he receives a social security pension of JD 4,200 per month for reaching the age of sixty, started from 1/1/2020.
8. He donated JD 10,000 to a Jordanian non-governmental organization which is approved by the Council of Ministers.

Instructions:

Prepare an income tax return for this taxpayer on 31/12/2020.

income tax return for the year ended 31/12/2020

Question (2): 7 Marks

The income tax information for the taxpayer Ali for the year 2020 is as follows:

1. Ali is a resident Jordanian natural person; his resident spouse is working.
2. His total income is JD 60,000 for a rented property.
3. The following amounts were paid on the property during the year 2020:

1. JD 2,400 maintenance expenses
2. 10% of the property income was paid as building and land taxes (Al-Musakfat).
3. 3% of the property income was paid as Sewage expenses.
4. 2% of the property income was paid as Al-Maref Taxes.
5. JD 4,000 depreciation expenses.

Instructions:

Prepare an income tax return for Ali on 31/12/2020 based on the gross income approach.

Income tax return for the year ended 31/12/2020

Question (3): 3 Marks

On 31/1/2020, Dr. Mazen resigned from his work at one of the Jordanian universities after a service in the field of teaching that lasted for 20 years. His wife is resident and non-working. He received EOSB against his service at the university is JD 110,000. It is divided into the following segmentations:

• JD 30,000 for Ali's services prior to 1/1/2010
• JD 60,000 dinars for his services from 1/1/2010 to 31/12/2014; and
• JD 20,000 dinars for his services from 1/1/2015 to the end of service date.

Instructions:

1. Determine the taxable income of the EOSB
2. Determine the tax due of EOSB
3. Determine the tax balance of EOSB