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Jordan
Overview
Last reviewed - 11 February 2025Jordan is a constitutional monarchy in Western Asia, having gained independence in 1946. It is divided into 12 governorates, with Amman as its capital. The official language of Jordan is Arabic, and the currency is the Jordanian dinar (JOD). The Jordanian dinar is pegged to the United States dollar (USD), with the Central Bank of Jordan committed to maintaining monetary stability.
Despite limited natural resources, Jordan’s economy has shown steady growth since 2003, with a projected gross domestic product (GDP) growth rate of 2.8% in 2023. The economy is primarily driven by the manufacturing and services sectors, with key exports including chemical products, clothing, and apparel. Tourism and foreign investment also play significant roles in economic growth.
In line with its Economic Modernisation Vision, Jordan has introduced several reforms to attract foreign investment and promote sustainable development. A key initiative is the Investment Environment Law of 2022, which provides incentives and tax breaks for companies operating in free zones, development zones, and less developed areas. Additionally, the government has established a network of special economic, development, and free zones to position Jordan as a competitive regional hub for trade and exports. Leveraging its strategic location in the Middle East, Jordan offers investors access to key regional and international markets, making it an attractive destination for business expansion.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
Banks: 35%; Telecommunications companies, insurance companies, financial intermediaries, mining companies, and electricity generation and distribution companies: 24%; All other activities: 20%. Note that a national contribution tax also applies to taxable income, with rates varying based on the sector. |
| 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 |
To the extent the taxpayer is required to remit two CIT advance payments on the accrued income tax (subject to reaching certain revenue threshold), the first advance payment is due within 30 days from the end of the first half of the income tax period. The second advance payment is due within 30 days from the end of the second half of the 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) |
See the Withholding taxes section of Jordan's corporate tax summary. |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
See Jordan's corporate tax summary for capital gain rates. |
| Headline individual capital gains tax rate (%) |
See Jordan's individual tax summary for capital gain rates. |
| 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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