A taxpayer's due tax shall be computed on a calendar-year basis.
A taxpayer who closes one's accounts on a date other than the end of the calendar year may calculate the due tax according to the fiscal year, provided that prior approval shall be obtained from the General Director of the income tax department.
A taxpayer who commences activity within the first half of the calendar year shall compute the due tax for the period from the establishment date until the end of the calendar year.
A taxpayer who commences activity within the second half of the calendar year may compute the due tax for the period from the establishment date until the end of the next calendar year.
Taxpayers are obligated to file tax returns before the end of the fourth month following the end of the tax period, including details related to income, expenses, exemptions, and tax due. Tax returns are submitted through the tax authority’s online portal.
Payment of tax
The tax balance is due before the end of the fourth month following the end of the tax period.
A taxpayer who is carrying out business activities and has gross income in the previous tax period exceeding JOD 1 million from these activities is required to remit two advance payments on the accrued income tax from these activities using the rates determined for each tax period mentioned in the following schedule. The advance payments are calculated according to the income tax in the financial statements presented to the income tax department for the concerned period. In the absence of the financial statements for this period, the income tax included in the immediate preceding tax declaration will be used to calculate the advance payments.
|Tax period||Rate on accrued income tax (%)|
|2015 and following years||40|
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.
Fines and penalties
Failure to pay tax on the assigned dates according to the provisions of the tax law will result in a delay fine at a rate of 0.4% of the value of the tax due or any deductible amounts for each full or partial week of delay.
Tax audit process
The tax audit is likely to take place within one year from the date of filing the return.
Statute of limitations
The tax auditor may not audit a tax return after four years from the date of filing the return.
Topics of focus for tax authorities
Tax authorities tend to focus on WHTs, imported goods or services, and related-party transactions.