Jordan » Taxes

Income Tax	VAT	Capital Gains Tax	Transfer Tax	Property Tax

Income Tax

The fiscal year begins on January 1-st and ends on December 31 of the same year. Rate is progressive, it varies between 5 and 30%.

• From 0 to JD 2,000 -5%
• From JD 2,001 to JD 4,000 -10%
• From JD 4,001 to JD 8,000 -15%
• From JD 8,001 to JD 12,000 -20%
• From JD 12,001 to JD 16,000 -25%
• Beyond JD 16,000 -30%

VAT

Standard rates

The VAT is represented by a General Sales Tax (GST). It applies to national products as well as imported products. The rate of this tax is 16%.

Reduced rates

There are some GST exempt products.

Corporate tax

• 15% for companies in the following sectors: hospitals, hotels, mining, industry, construction and transportation
• 35% for companies in the sectors of banks and finance
• 25% for companies in the sectors of insurance, exchange, trade, telecommunications, services and other

In Jordan, capital gains are levied at the normal corporate income tax rates, except for gains on the sale of shares, which are not taxable. Dividends are not subject to tax in Jordan. Branches are taxed in the same way as the other companies in Jordan.