Jordan

Corporate Income Tax (CIT) in Jordan

CIT rates in Jordan are applied based on the industry or business activities from which the taxpayer generates income. According to the Income Tax Law, the CIT rates are as follows:

• 35% for banks.
• 24% for telecommunications, insurance and reinsurance companies, financial intermediation companies (including currency exchange and finance leasing companies), companies engaged in electricity generation and distribution, and companies involved in mining raw materials.
• 20% for all other companies.

Taxation of Jordanian Resident Corporations

Jordanian resident corporations are generally not subject to CIT on their worldwide income. However, income derived on investments generated from Jordanian deposits and funds is taxed at a rate of 10%.

For foreign branches of Jordanian resident corporations, the entire net income of the branch is taxed at a fixed rate of 10%.

Taxation of Non-Resident Corporations

Non-resident corporations are generally subject to tax through withholding tax (WHT) on income sourced from Jordan. (Refer to the Withholding Taxes section and PE section for more details.)

National Contribution Tax

The National Contribution Tax applies to the taxable income of all legal entities, with rates varying based on the taxpayer's sector and activities. The applicable rates are as follows:

Local Income Taxes

There are no governorate or local income taxes in Jordan.