Tax rates in Jordan

Company Tax

20% (21% with the national contribution tax)

Tax Rate For Foreign Companies

Resident corporations are subject to corporate income tax on their Jordan-source income, unless an income is raised from sources that originate and relate to Jordanian deposits and funds, in which case this income would be taxed at a rate of 10%.
Non-resident corporations are taxed through withholding tax. Branches of foreign companies are taxed in Jordan at the prevailing corporate tax rates. Foreign branches of Jordanian resident companies are taxed at a fixed rate of 10% of net income.

Capital Gains Taxation

Capital gains are tax-exempt, except for those arising from depreciable assets, the sale of shares in a legal entity and the sale of shares in IT companies that occur after 15 years from the date of their establishment or after 1 January 2019, whichever is earlier.

Main Allowable Deductions and Tax Credits

Amortisation of tangible and intangible assets is tax-deductible. Goodwill can also be deducted. The Jordanian tax code does not include any provisions for start-up costs, but these can usually be deducted in the first year of business activity.
Interest charges (a 3:1 debt-to-equity ratio applies to interest paid on related party debt) and bad debt are generally deductible.
Donations to charitable organisations are deductible up to 25% of taxable income.
Fines are not deductible while taxes can be deducted from the tax base.
Insurance premiums, social security contributions, hospitality expenses, marketing, scientific research, development, and training expenses are deductible.
Tax losses incurred before 1 January 2015 may be carried forward indefinitely. The carryforward is limited to five years for losses incurred after 1 January 2015. Loss carryback is prohibited.

Other Corporate Taxes

Property tax is calculated by local authorities based on the location and size of the property or, in some cases, the rental value of the property (15% on average).
Property transfer taxes amount to 9% of the selling price (5% for registration fees and 4% for sale).
Stamp duties are levied at a rate of 0.3% for private contracts and 0.6% for contracts with the state or public companies.
Social security contributions payable by the employer amount to 14.25% of salary (capped at JOD 3,349 per month).

Other Domestic Resources

Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Tax Rate

Allowable Deductions and Tax Credits

Deductions and allowances are set at JOD 9,000 for a single person. A lump-sum deduction of JOD 1,000 is granted to expenses incurred for medical treatment, education, rent and interest on housing. A deduction of JOD 1,000 is granted for the spouse of the taxpayer and for each child (capped at JOD 3,000). Individuals with special needs are granted an additional exemption of JOD 2,000 per year. Personal deductions are capped at JOD 23,000 per family regardless of joint or individual tax returns.
Charitable contributions are deductible up to 25% of the taxable income, or without any limit if the recipient is any of the governmental departments, public or official institutions, or municipalities.
Most business expenses and insurance premiums are also deductible (bad debts, insurance premiums, certain taxes, hospitality and travel expenses, marketing, scientific research, development, and training expenses, etc.).

Special Expatriate Tax Regime

Both residents and non-residents are only taxed on their Jordan-source income.