Allo' Expat Jordan - Connecting Expats in Jordan  
Allo' Expat Jordan Logo


 
Check our Rates
   Information Center Jordan
Jordan General Information
Jordan Expatriates Handbook
Jordan and Foreign Government
Jordan General Listings
Jordan Useful Tips
Jordan Education & Medical
Jordan Travel & Tourism Info
Jordan Lifestyle & Leisure
Jordan Business Matters
 
Jordan Business
Taxation in Jordan
  Sponsored Links


Check our Rates

Taxation in Jordan
 
 
 

A new income tax law went into effect in 2002 that reduced the top income tax rate to 25% from 30%. The new law also equalised the level of tax exempt income for men and women, at JD1,000 (about $1,418) for both sexes. Income tax rates range from 5% to 25%, with the average tax payer paying a marginal rate of 5%. Corporations are taxed at a rate of 15% (35% for those involved in banking and finance).

In January 2001 Jordan entered the second phase of its transformation to a value-added tax (VAT) regime, a reform begun in 1996. The VAT rate is 13%, and in 2001 about 25 new commodities were added to its coverage, including some food products, tobacco, coffee, soft drinks, new cars, heavy-duty vehicles and paper products. Businesses with sales less than JD250,000 (about $355,000) a year are exempt from registering for the VAT. There are no capital gains or net worth taxes on individuals, and social security taxes are paid jointly by employers and employees.

There is no obligation to produce accounting information. Nevertheless, the information published must be clear, easily understandable and reliable. Only the banking sector is subjected to some obligations.

The "Jordanian Commercial Law" obliges any company to hold an account book, a stock account as well as a business correspondence register. These documents must be kept on the Jordan Territory and drafted in English or Arabic.

 

 
 


 



 


copyrights © AlloExpat.com
2017 | Policy