ISTD Income Tax Brackets in Jordan for 2024

The investment environment laws and regulations in the Hashemite Kingdom of Jordan (hereafter referred to as Jordan) have established several business-first incentives for local and international investors as part of the country’s efforts to attract investments. In line with this, economic activities outside the Development and Free Zones will be granted full custom duties exemption on all fixed assets, production requirements and inputs. Additionally, these economic activities will benefit from a zero-sales tax rate on these fixed assets. With certain conditions, there are also specified economic activities which may enjoy a reduction or exemption from income tax for 5 years.

The tax system in Jordan is administered by the official tax body, the Income and Sales Tax Department (ISTD). The Income Tax Law provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these income tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with Jordanian tax law.

Here, you will learn about:

• headline tax rates
• personal income tax (PIT) rates 
• corporate income tax (CIT) rates 
• capital gains tax (CGT) rates 
• withholding tax rates
• sales tax rates

Headline Tax Rates in Jordan

Personal Income Tax (PIT) Brackets for Individuals in Jordan for 2024

Any income that is accrued in or from Jordan, for any individual, regardless of the place of payment, is subject to tax in Jordan. Income is taxed progressively. Under the Special Expatriate Tax regime, both residents and non-residents are taxed only on their Jordan-sourced income. Where an individual’s annual income exceeds JOD$200,000, the individual will be subject to a 1% national contribution tax. 

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Jordan for 2024

The Corporate Income Tax (CIT) rates in Jordan are tabulated below:

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Jordan

Capital Gains Tax (CGT) rates for individuals and corporations in Jordan are tabulated below:

Withholding Tax Rates for Residents and Non-Residents in Jordan

In general, withholding tax (WHT) is levied on residents and non-residents in Jordan. The receipt of certain dividends is exempt: from limited liability companies, general or limited partnerships, and private and public shareholding companies. However, this does not extend to receipt of certain other dividends: for banks, mining raw material companies, insurance and reinsurance companies, financial companies, and more.

As Jordan is a signatory to several double taxation treaties (DTTs), the effective tax rates may vary further and a taxpayer may benefit from the provisions of these DTTs.

Sales Tax Rates in Jordan

Jordan imposes a general sales tax similar in operation to a value-added tax (VAT), at the rate of 16% on:

• the sales of goods and/or services, and
• the importing of any service or goods from outside Jordan, or from the free zone areas and markets inside Jordan.