Income Tax Law No. 34 of 2014, as amended

Who is taxable?

Income earned in or derived from Jordan is taxable, for both natural persons (individuals) and legal persons (companies and establishments).

The annual return

• File the return and pay the balance within four months of the end of the tax period — by 30 April for calendar-year taxpayers.
• Returns are filed online through the Income and Sales Tax Department's e-services.
• Spouses may file a joint return.

Tax rates

• Individuals: progressive brackets on taxable income after exemptions.
• Companies: a general rate of 20%, higher for specific sectors such as banks, telecoms, insurance and financial brokerage.

Exemptions

Individuals get a personal exemption and an exemption for dependants, plus an exemption for specific expenses such as education, medical care, rent and housing-loan interest, supported by invoices. Check the amounts in force for your tax year.

Withholding at source

• Employers withhold tax from employees' salaries every month.
• Tax is also withheld from service fees, rent, interest and non-residents' income.
• Withheld amounts must be remitted within 30 days of the payment date.

Advance payments

Taxpayers whose gross income exceeded JOD 1 million in the previous period pay two advance payments, each within 30 days of the end of a half of the tax period.

Penalties and audits

• Late payment: 0.4% of the tax due for each week or part of a week.
• Further fines apply for not filing, or for failing to withhold and remit.
• In normal cases the department may not audit a return more than four years after it was filed.