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Jordan
Overview
Last reviewed - 04 February 2024Jordan, a constitutional monarchy on the East Bank of the River Jordan in Western Asia, gained its independence in 1946. It is divided into 12 governorates, with Amman as the capital. The official language of Jordan is Arabic, and the currency is the Jordanian dinar (JOD).
Jordan acceded to the World Trade Organization (WTO) in 2000 and began to participate in the European Free Trade Association (EFTA) in 2001. Jordan's economy is among the smallest in the Middle East, with a small supply of water, oil, and other natural resources.
Jordan has been experiencing an increase in its economic growth since 2003, with an estimated gross domestic product (GDP) of 42.29 billion United States dollars (USD) (2018) (for an estimated population of 9.95 million). The manufacturing sector accounts for approximately 26% of Jordan's GDP, while the services sector accounts for 70%. Jordan has seen its export levels increase rapidly, primarily due to the export of clothes, apparel, and chemical products. The United States is currently Jordan's largest trading partner. In the recent past, Jordan has also seen an increase in activity in the following sectors: construction and real estate, tourism, and transportation.
With the sudden increase in population, there has been an urgent need of housing options for the new citizens. Jordan has been keen to liberalise and privatise its industries and has been proactive in attracting foreign direct investment in this sector.
Tourism is of vital importance to the national economy of Jordan. It's the Kingdom’s largest export sector, second largest private sector employer, and second highest producer of foreign exchange. Tourism contributes more than USD 800 million to Jordan’s economy and accounts for approximately 10% of the country’s GDP.
Considered to be the gateway to Iraq, any development of Iraq in the near future will create significant activity in the transportation sector.
PwC Jordan, which has been practising in Jordan since 1992, is part of the PwC Middle East Tax practice, which includes 42 tax partners and over 800 professional staff. The PwC tax practice provides assistance in indirect taxation (e.g. the sales tax regime that is similar to value-added tax [VAT]), international taxation, mergers and acquisitions/private equity, tax advisory, tax management and accounting services, and transfer pricing.
PwC Jordan is organised by industries, including banking and capital markets, energy, utilities and mining, financial services, government/public services, health industries, industrial products/manufacturing, insurance, Islamic banking & Takaful, real estate, telecommunication, and transportation and logistics.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
Banks: 35; Telecommunication, insurance corp.'s, financial intermediary: 24; Other corp.'s: 20 |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
Before the end of the fourth month following the end of the tax period. |
| CIT final payment due date |
Before the end of the fourth month following the end of the tax period, unless the taxpayer's gross income exceeded JOD 1 million in the previous tax period. If gross income exceeded JOD 1 million, then the taxpayer is required to remit two advance payments on the accrued income tax using certain rates applied for each tax period. |
| CIT estimated payment due dates |
If the taxpayer is required to remit two advance payments on the accrued income tax, then the first advance payment is due within a period not exceeding 30 days from the last day of the first half of that income tax period. The second advance payment is due within a period not exceeding 30 days from the last day of the second half of that income tax period. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
30 |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
Before the end of the fourth month following the end of the tax period. |
| PIT final payment due date |
Before the end of the fourth month following the end of the tax period, unless the taxpayer's gross income exceeded JOD 1 million in the previous tax period. If gross income exceeded JOD 1 million, then the taxpayer is required to remit two advance payments on the accrued income tax using certain rates applied for each tax period. |
| PIT estimated payment due dates |
If the taxpayer is required to remit two advance payments on the accrued income tax, then the first advance payment is due within a period not exceeding 30 days from the last day of the first half of that income tax period. The second advance payment is due within a period not exceeding 30 days from the last day of the second half of that income tax period. |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
Sales tax: 16 |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident: 0 / 5 or 7* / 0; Non-resident: 0 or 10 / 10 / 10 * Interest paid by Jordanian banks to individuals is subject to 5%, while interest paid by Jordanian banks to Juristic persons or non-resident person in Jordan is subject to 7%. |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
20 |
| Headline individual capital gains tax rate (%) |
30 |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
NA |
| Headline gift tax rate (%) |
NA |
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