Jordan Corporate Income Tax

Corporate income tax rates and base

Jordan applies sector-based corporate income tax rates plus a national contribution tax. Resident corporations are taxed largely on a territorial basis, with foreign branch income subject to a fixed rate.

• Standard CIT rate (most companies) — 20% percent (Income Tax Law No. 34 of 2014)
• CIT rate — banks — 35% percent (Income Tax Law No. 34 of 2014)
• CIT rate — telecom, insurance/reinsurance, financial intermediation, electricity, mining — 24% percent (Income Tax Law No. 34 of 2014)
• CIT rate — industrial companies — Reduced rate of 10%-14% depending on sector and location percent ((approx — confirm)) (Income Tax Law No. 34 of 2014)
• Development / free zone rate — Reduced flat CIT of 5% or 10% for qualifying activities, plus sales tax and customs exemptions percent (Investment Environment Law / Development and Free Zones legislation)
• Tax base — Territorial — resident corporations are generally not taxed on worldwide income; only Jordanian-source income is taxed (Income Tax Law No. 34 of 2014)
• Foreign branch net income — Taxed at a fixed rate of 10% percent (Income Tax Law No. 34 of 2014)
• National contribution tax (companies) — Banks & electricity 3%; mining 7%; financial intermediation/leasing 4%; major telecom & insurance 2%; other companies 1% percent (Income Tax Law No. 34 of 2014)
• Withholding tax on dividends — Generally exempt from WHT for both resident and non-resident recipients percent (Income Tax Law No. 34 of 2014)
• Withholding tax on interest/commissions (paid by banks/financial companies) — 5% for individuals; 7% for legal entities percent (Income Tax Law No. 34 of 2014)
• Withholding tax on non-resident services (imported services / royalties) — 10% plus national contribution tax percent (Income Tax Law No. 34 of 2014)
• Withholding tax on resident professional services — 5% on services by resident professionals (doctors, lawyers, engineers, etc.) percent (Income Tax Law No. 34 of 2014)
• Advance income tax payments — Two advance payments due within 30 days of the end of each half of the tax period where gross income exceeds JOD 1,000,000 (Income Tax Law No. 34 of 2014)
• CIT return filing and final payment deadline — Before the end of the fourth month following the end of the tax period (30 April for calendar-year companies) (Income Tax Law No. 34 of 2014)