Jordan

Individual - Sample personal income tax calculation

Last reviewed - 04 February 2024

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:

  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.