Jordan - Mixed (Civil and Islamic law)
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Jordan taxes

If you are want to do business in Jordan, this article will educate you on the tax laws for a LLC(WLL), which is the most common legal entity in Jordan.

Jordan taxes corporate income under a territorial tax system. This means that usually offshore income, from our research, and your results may vary, is not subject to taxation. However, income from foreign branches and dividends received from non-resident entities may be taxed at a flat rate of 10%. The standard corporate income tax rate is 20%. For companies involved in the industrial sector income tax rate is 14%. Energy, telecommunications, mining, insurance and financial services companies are taxed at a 24% rate. Banks are taxed at 30%. Jordan ranks 70th when compared to corporate tax rate worldwide.

The value added tax (VAT) rate in Jordan is 16.00%, which ranks Jordan as 101th overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will contribute 14.25% to the equivalent of a social security fund and an employee will contribute 7.50%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 90hours. Contributing to this is the number of yearly labor tax payments, which is 26 in JO.

Thin capitalisation mandates are in effect. Thin capitalisation refers to any sort of restrictions on companies' debt-to-asset ratios. Dividends received from a resident company are not taxable. Dividends received from a non-resident entity may be subject to a 10% final tax. Dividends are payments of earnings of the business, passed by the board, to a particular class of shareholders. Dividends can be one of the following stock, cash, or property. Capital Gains are usually tax-exempt. However, those obtained from depreciable assets and capital gains from banks, telecommunications, financial institutions and insurance companies may be taxable. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

There is no withholding tax on dividends paid to non-residents, except for profit distributions of financial institutions, which are taxed at 5%. Payments on interests and royalties to non-residents are subject to a 10% withholding tax.
There is no known tax on wealth in Jordan. There are no known inheritance and transfer taxes in JO. There is a real property tax. There are no widely used credits for innovation spend that include tax relieft in Jordan.

The above is not tax or legal advice for your company situation. can refer you to a tax advisor in Jordan who will advise you. Ready to get started? Click incorporate now if you are in a hurry, or press the free consultation button above.

It takes approximately 10 hours to file and prepare documents for a Jordan Mixed (Civil and Islamic law).
The corporate tax is approximately 20% which is 70 in the world.

Owners of a company in Jordan are not allowed to carry back a loss and may be allowed to carry forward a loss for 5 years.

The vat rate in Jordan is 16% which ranks 101 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
21Tax treaties
0%Offshore Tax
20%Corp rate
-Loss carryback years
10Corporate time
16%VAT rate
0%Capital gains
NoAEOI planned

Read this to learn about incorporating a company in

We can help you form a company in Jordan. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Jordan, which is required by law.

Jordan Tax Treaties

CountryTypeDate signed
DTC 1994-10-02
DTC 2005-02-20
DTC 1999-04-20
South Korea
DTC 2004-07-24
DTC 1999-09-06
DTC 2004-01-12
DTC 1997-10-04
DTC 1988-02-14
DTC 2006-03-02
DTC 2005-11-30
United Kingdom
DTC 2001-07-22
DTC 2009-04-16
DTC 2006-10-30
DTC 1984-05-28
Czech Republic
DTC 2006-04-10
DTC 1983-10-10
DTC 2002-10-31
DTC 1985-06-06
DTC 1996-11-12
DTC 2004-03-16
DTC 2005-03-16

Country Info

National Flag of
المملكة الأردنية الهاشمية (ara)
Area Code
Western Asia
Native Languages