The CIT rates in Jordan are applied based on the industry/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 telecommunication, insurance and reinsurance, financial intermediation companies (including exchange and finance leasing companies), companies that generate and distribute electricity, and companies that undertake mining raw material activities.
- 20% for other companies.
Jordanian resident corporations are not subject to CIT on their worldwide income unless that income is raised from sources that originate and relate to Jordanian deposits and funds, in which case this income would be taxed at rate of 10%. For foreign branches of Jordanian resident corporations, all of the branch net income is taxed at a fixed rate of 10%.
Non-resident corporations are taxed through withholding tax (WHT) (see the Withholding taxes section).
National contribution tax
A national contribution tax will apply on taxable income of all legal persons at different rates depending on the sector. The rates are set out below:
|Banks and companies that undertake generating and distributing of electricity activities||3|
|Companies that undertake mining raw materials activities||7|
|Financial intermediation and brokerage ﬁrms, currency exchange companies, juristic persons who undertake ﬁnancial leasing activities||4|
|Main telecommunications companies; insurance and reinsurance companies||2|
|Other companies not listed above||1|
Local income taxes
There are no governorate or local income taxes in Jordan.