Jordan

Any income incurred in or from Jordan, for any person, regardless of the place of payment, shall be subject to tax in Jordan.

Employment income

Salaries, wages, allowances, and bonuses (in cash or in kind) received from any employment, including the estimated annual value of housing, lodging, boarding, or any other allowance, are taxable in Jordan.

The first JOD 2,500 of monthly pension salary paid by a resident person shall be exempt from income tax.

Moreover, there is an annual exemption of JOD 2,000 for people with full or partial disabilities.

Equity compensation

Generally, income from stock options and restricted stock are subject to tax within the individual's taxable income.

Business income

Income from professional services or activities, and any other income from business activity or investment, unless specifically exempted according to Jordan's Income Tax Law, is combined with the other categories of income in order to determine PIT through the filing of an individual income tax return.

Note that the first JOD 1 million of annual income generated from agricultural activity inside Jordan is not taxable for a natural person.

Capital gains

Capital gains generated within the Kingdom are exempt from tax, except for gains realized from the sale of depreciable assets. Additionally, capital gains from the first sale of shares in certain IT companies and establishments are exempt for a period of up to 15 years from the date of their registration or from 1 January 2019, whichever is earlier.

Generally, capital gains realized by individuals from the sale of both listed and non-listed shares are subject to the same tax treatment as gains realized by companies on the sale of these shares.

Dividend income

Receipt of dividends from limited liability companies, general partnerships, limited partnerships, and private and public shareholding companies that are resident in Jordan is exempt.

Dividends received by a resident person from a non-resident person are taxable in Jordan provided that they originate from money or deposits from inside Jordan.

Interest income

Interest income is taxable and should be included in taxable income of the individual. 

Rental income

Exempt income

According to Jordan's Income Tax Law, the following types of income are exempt from Personal Income Tax (PIT):

• Compensation paid by insurance entities, except for amounts paid as reimbursement for the loss of income from business activities or employment.
• Employment income received by members of non-Jordanian diplomatic or consular missions representing other countries in Jordan, subject to the principle of reciprocal treatment.
• Income from the distribution of estates or wills to heirs or beneficiaries, in accordance with the provisions of applicable legislation.

This list highlights key exemptions but does not cover all possible cases under the law.