Understanding corporate income tax and other business taxes in Jordan is crucial for companies operating within the country. Alongside corporate income tax, businesses should be aware of other taxes, including VAT, personal income tax, social security contributions, customs duties, and withholding tax. It is advisable to consult with a tax professional or refer to the official website of the Jordanian Income and Sales Tax Department for the most accurate and up-to-date information. By fulfilling their tax obligations, businesses can operate in compliance with Jordanian tax laws and contribute to the growth and development of the country's economy while navigating the unique opportunities and challenges presented by the Jordanian business environment.
Corporate Income Tax:
Jordan imposes corporate income tax on the profits earned by companies operating within its jurisdiction. The corporate income tax rate in Jordan is a flat rate of 20%. This rate applies to both resident and non-resident companies engaging in commercial, industrial, or professional activities in the country.
Types of Business Taxes in Jordan:
Value Added Tax (VAT): Jordan operates a Value Added Tax (VAT) system. The standard VAT rate in Jordan is currently set at 16%. Certain goods and services may be subject to reduced rates or exemptions. VAT is applicable to most goods and services, with exceptions for specific categories.
Income Tax: In addition to corporate income tax, individuals in Jordan are subject to personal income tax on their earnings. The personal income tax rates in Jordan are progressive, ranging from 5% to 30%, depending on income levels.
Social Security Contributions: Employers and employees in Jordan are required to make social security contributions. These contributions fund various social security benefits, including pensions, healthcare, and unemployment benefits. The rates for social security contributions vary based on the employee's salary and specific circumstances.
Customs Duties: Customs duties are levied on imported goods into Jordan. The rates vary depending on the type of goods and their classification under the Harmonized System (HS) code.
Withholding Tax: Jordan imposes withholding tax on certain types of payments made to non-residents, such as dividends, interest, royalties, and technical service fees. The withholding tax rates vary depending on the nature of the payment and may be subject to tax treaties.
Jordanian Income and Sales Tax Department Website:
For comprehensive and up-to-date information on business taxes in Jordan, it is recommended to visit the official website of the Jordanian Income and Sales Tax Department.
Jordanian Income and Sales Tax Department Website: Official Jordanian Income and Sales Tax Department Website