As per the new income tax law, the yearly PIT computation for a resident individual with total income of JOD 40,000 is as follows:
|Yearly income (2019)||40,000|
|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|
* 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.