Tax in Jordan

Who is the tax authority and where do filings live?

Jordan's Income and Sales Tax Department (ISTD), under the Ministry of Finance, administers Jordan's tax system [SC1]. Customs administered separately. Substantive law: Income Tax Law 38/2018 (replacing prior 28/2009), General Sales Tax Law, and successive amendments. Jordan is a Greater Arab Free Trade Area (GAFTA) member.

What is the tax year and when are returns due?

Individual tax year is the calendar year. Personal returns due 30 April [SC1]. Wage tax withheld monthly. Corporate annual returns due 30 April. GST monthly by end of following month.

Who is a Jordanian tax resident?

Under ITL 38/2018, an individual is tax resident if (a) physically present 183+ days in tax year, OR (b) being a Jordanian state employee abroad [SC2]. Residents taxed on Jordanian-source income (territorial-source taxation framework).

What are the personal income tax rates?

Six brackets: 5 percent up to JOD 5,000; 10 percent on JOD 5,001-10,000; 15 percent on JOD 10,001-15,000; 20 percent on JOD 15,001-20,000; 25 percent on JOD 20,001-1,000,000; 30 percent above JOD 1,000,000 [SC1]. National contribution 1 percent on income above JOD 200,000. Personal allowance JOD 9,000 standard / JOD 18,000 family.

How does Jordan's corporate tax work?

CIT 20 percent for resident companies [SC2]. Sector-specific 24 percent telecoms; 28 percent mining; 35 percent banks. Withholding on non-resident dividends 10 percent. Pillar Two pending. Tax losses 5 years.

What about GST?

GST 16 percent under General Sales Tax Law (VAT-style invoice-credit) [SC3]. Reduced rates apply on specific categories. Special Sales Tax separately on alcohol, tobacco, fuels.

How are cryptoassets taxed?

Central Bank of Jordan advisory: cryptoassets not legal tender [SC2]. Where declared, gains under existing categories.

What is the treaty network and what are the audit triggers?

Jordan has approximately 32 active double tax treaties [SC4]. MLI signed 2017. Standard SOL 4 years; extended for fraud.

What are the common penalties and pitfalls for foreigners?

Penalty framework: late filings, failure to file, incorrect declarations [SC5]. Common pitfalls: (1) territorial-source framework; (2) sector-specific 24/28/35 percent CIT for telecoms/mining/banks; (3) National contribution 1 percent above JOD 200,000; (4) Pillar Two pending; (5) ~32 DTCs + MLI signed 2017; (6) GST 16 percent + Special Sales Tax on excisables; (7) post-2018 ITL 38/2018 reform; (8) GAFTA member; (9) banking sector 35 percent + post-2018 reforms; (10) IMF programme conditions context.