Jordan Corporate Income Tax

Corporate income tax rates and base

• Standard CIT rate (most companies) — 20% percent (Income Tax Law No. 34 of 2014 (https://taxsummaries.pwc.com/jordan/corporate/taxes-on-corporate-income))
• CIT rate — banks — 35% percent (Income Tax Law No. 34 of 2014 (https://taxsummaries.pwc.com/jordan/corporate/taxes-on-corporate-income))
• CIT rate — telecom, insurance/reinsurance, financial intermediation, electricity, mining — 24% percent (Income Tax Law No. 34 of 2014 (https://taxsummaries.pwc.com/jordan/corporate/taxes-on-corporate-income))
• CIT rate — industrial companies — Reduced rate of 10%-14% depending on sector and location percent ((approx — confirm)) (Income Tax Law No. 34 of 2014 (https://taxsummaries.pwc.com/jordan/corporate/taxes-on-corporate-income))
• 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 (https://www.flick.network/en-jo/corporate-tax-jordan))
• 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 (https://taxsummaries.pwc.com/jordan/corporate/taxes-on-corporate-income))
• Foreign branch net income — 10% percent (Taxed at a fixed rate) (Income Tax Law No. 34 of 2014 (https://taxsummaries.pwc.com/jordan/corporate/taxes-on-corporate-income))
• 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 (https://taxsummaries.pwc.com/jordan/corporate/taxes-on-corporate-income))
• Withholding tax on dividends — Generally exempt from WHT for both resident and non-resident recipients percent (Income Tax Law No. 34 of 2014 (https://taxsummaries.pwc.com/jordan/corporate/withholding-taxes))
• 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 (https://taxsummaries.pwc.com/jordan/corporate/withholding-taxes))
• Withholding tax on non-resident services (imported services / royalties) — 10% plus national contribution tax percent (Income Tax Law No. 34 of 2014 (https://taxsummaries.pwc.com/jordan/corporate/withholding-taxes))
• Withholding tax on resident professional services — 5% on services by resident professionals (doctors, lawyers, engineers, etc.) percent (Income Tax Law No. 34 of 2014 (https://taxsummaries.pwc.com/jordan/corporate/withholding-taxes))
• 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 JOD (Income Tax Law No. 34 of 2014 (https://taxsummaries.pwc.com/jordan))
• 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 (https://taxsummaries.pwc.com/jordan))