Jordan
Individual - Sample personal income tax calculation
Last reviewed - 03 June 2024As per the new income tax law, the yearly PIT computation for a resident individual with total income of JOD 40,000 is as follows:
JOD | |
Yearly income (2019) | 40,000 |
Less: | |
Personal exemption* | (10,000) |
JOD 1,000 against certain expenses** | (1,000) |
Yearly taxable income | 29,000 |
The first JOD 5,000 is subject to PIT at 5% | 250 |
The second JOD 5,000 is subject to PIT at 10% | 500 |
The second JOD 5,000 is subject to PIT at 15% | 750 |
The second JOD 5,000 is subject to PIT at 20% | 1,000 |
The remaining balance of the yearly taxable income (JOD 9,000) is subject to PIT at 25% | 2,250 |
Total PIT | 4,750 |
* 20,000 if the individual has resident dependants.
** Such expenses should be supported by necessary documents and invoices. Moreover, the maximum amount for this exemption is JOD 3,000.