Verified Facts
Tax rates in Jordan range from 5% to 25% for personal income, with a corporate tax rate of 20% and a value-added tax (VAT) rate of 16%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Jordan has a territorial taxation system, where residents are taxed on their income earned within Jordan, regardless of where it is earned. Non-residents are taxed only on their Jordan-sourced income. The residency rules for tax purposes state that an individual is considered a resident if they have a permanent home in Jordan, or if they spend more than 6 months in the country in a calendar year. Individuals who are not residents of Jordan are considered non-residents and are only subject to tax on their Jordan-sourced income.
The tax system in Jordan is administered by the Income Tax Department, which is responsible for collecting taxes, auditing tax returns, and providing tax guidance to taxpayers. The tax year in Jordan runs from January to December, and taxpayers are required to file their tax returns by April 30th of the following year. Taxpayers who are required to file a tax return include individuals who earn income from employment, business, or investments, as well as companies and other organizations that conduct business in Jordan.
Personal Income Tax
| Income Bracket (JOD) | Tax Rate |
|---|---|
| 0 - 12,000 | 5% |
| 12,001 - 24,000 | 10% |
| 24,001 - 36,000 | 15% |
| 36,001 - 48,000 | 20% |
| 48,001 and above | 25% |
Taxpayers in Jordan are entitled to various deductions and allowances, including a personal allowance of JOD 12,000, as well as deductions for mortgage interest, charitable donations, and medical expenses. Tax returns must be filed electronically, and taxpayers are required to pay any tax due by the filing deadline to avoid penalties and interest. Taxpayers who are required to file a tax return must also obtain a tax clearance certificate from the Income Tax Department, which is required for various purposes such as obtaining a residence permit or opening a bank account.
Corporate & Business Tax
- The corporate tax rate in Jordan is 20%, which applies to all companies that conduct business in the country.
- Small business incentives are available, including a reduced tax rate of 15% for small and medium-sized enterprises (SMEs) that meet certain criteria.
- Free zones are available in Jordan, which offer tax exemptions and other incentives to companies that establish operations in these zones.
- Companies that conduct business in Jordan are required to register with the Income Tax Department and obtain a tax registration number.
- Value-added tax (VAT) registration is also required for companies that conduct business in Jordan and have an annual turnover of JOD 10,000 or more.
VAT / Sales Tax
- The standard VAT rate in Jordan is 16%, which applies to most goods and services.
- Reduced VAT rates apply to certain goods and services, including food, healthcare, and education.
- Exemptions are available for certain goods and services, including financial services, real estate, and charitable donations.
- A tourist refund scheme is available in Jordan, which allows tourists to claim a refund of VAT paid on certain goods and services.
For Expats & Foreign Workers
- Tax residency rules state that an individual is considered a resident if they spend more than 6 months in the country in a calendar year.
- Jordan has a double taxation treaty network of 40 countries, which helps to prevent double taxation and fiscal evasion.
- Social security contributions are required for employees and employers in Jordan, which provide benefits such as pension, healthcare, and unemployment insurance.
- Remittance rules apply to foreign workers who send money out of Jordan, which require them to obtain a tax clearance certificate from the Income Tax Department.
- Tax obligations for expats and foreign workers include filing a tax return and paying any tax due by the filing deadline.
- Tax exemptions are available for certain types of income earned by expats and foreign workers, including income earned from employment with a foreign government or international organization.
Crypto & Investment Income
- Investment income, including dividends, interest, and capital gains, is subject to tax in Jordan.
- Cryptocurrency is considered a taxable asset in Jordan, and gains from the sale of cryptocurrency are subject to capital gains tax.
- Tax obligations for investors include filing a tax return and paying any tax due by the filing deadline.
- Tax exemptions are available for certain types of investment income, including income earned from investments in Jordanian stocks and bonds.