Jordan

Individual - Tax administration

Last reviewed - 02 July 2020

Taxable period

The tax year in Jordan is the calendar year. However, a taxpayer who closes one's accounts on a date other than the end of the calendar year may calculate one's tax according to the fiscal year, provided that prior approval is obtained from the Director General of the Income and Sales Tax Department.

Tax returns

Taxpayers are obligated to file tax returns before the end of the fourth month following the end of the tax period.

Married taxpayers can file a joint tax declaration.

Payment of tax

Taxpayers are obligated to pay income taxes before the end of the fourth month following the end of the tax period.

A taxpayer who is carrying out business activities and whose gross income in the previous tax period exceeded JOD 1 million from these activities is required to remit two advance payments on the accrued income tax from these activities using the rates determined for each tax period mentioned in the following schedule. The advance payments are calculated according to the income tax in the financial statements presented to the Income and Sales Tax Department for the concerned period. In the absence of the financial statements for this period, the income tax included in the immediately preceding tax declaration will be used to calculate the advance payments.

The first advance payment is due within a period not exceeding 30 days from the last day of the first half of that income tax period.

The second advance payment is due within a period not exceeding 30 days from the last day of the second half of that income tax period.

For the tax year 2015 and following periods, the advance payment is 40%.

Audit cycle

The Income and Sales Tax Department is the tax authority in Jordan.

The tax authority chooses declarations to be audited according to standards and measures that the tax authority deems fit. If, after review of the tax declaration, the auditors find discrepancies, they can totally or partially reject the tax declaration and issue an audit notice asking the taxpayer to attend a session to discuss the tax declaration. An auditor must issue an audit decision within two years from the date of issuing the audit notice.

Statute of limitations

An auditor may not audit a tax declaration after four years following the date of submitting that declaration.

Topics of focus for tax authorities

One of the main focuses of the tax authority is the exemptions. Individuals are currently being asked to provide proper documentation to prove their entitlement to the exemptions.