Taxation in Jordan

Jordanian tax is administered by the Income and Sales Tax Department under the Income Tax Law No. 34 of 2014 (as amended) and the General Sales Tax Law No. 6 of 1994. The standard corporate rate is 20 percent, banks are taxed at 35 percent, and General Sales Tax is 16 percent. We advise on planning, audits and tax disputes.

Jordan’s tax environment has evolved rapidly. New transfer-pricing regulations, stricter audit practice at the Income and Sales Tax Department (ISTD), and a growing network of double-taxation treaties have made tax planning and tax defence more technical than ever. Abdullah & Partners advises corporations, high-net-worth individuals and foreign investors on the full spectrum of Jordanian tax matters, combining technical precision with practical experience of how tax files are actually decided in Amman.

Tax assessments rarely settle themselves. We represent clients from the first ISTD audit notice through objection, reconciliation and full litigation before the Income Tax Court of First Instance, the Court of Appeal and the Court of Cassation. Our partners know when to fight an assessment and when to negotiate it down, and we build files that stand up both on the law and on the underlying accounting. We also coordinate closely with in-house finance teams and external auditors to ensure positions taken in tax returns can be defended if challenged.

For international clients, we advise on the application of Jordan’s double-taxation treaties, permanent establishment risk, withholding on cross-border services and royalties, and repatriation of profits. Where needed, we coordinate with tax advisers in the client’s home jurisdiction and in other MENA countries to deliver joined-up structuring.

In tax, the difference between a routine filing and a seven-figure exposure is almost always a few lines of well-reasoned analysis done at the right moment.

Jordanian tax is administered by the Income and Sales Tax Department under the Income Tax Law No. 34 of 2014, as amended by Law No. 38 of 2018, and the General Sales Tax Law No. 6 of 1994. The standard corporate income tax rate is 20 percent, with higher rates for certain sectors, including 35 percent for banks, and a National Contribution Tax applied on top for those sectors and for larger taxpayers. General Sales Tax is charged at a standard rate of 16 percent, and registration becomes mandatory once turnover passes the statutory threshold, currently JOD 30,000 for services and JOD 75,000 for goods. Rates are adjusted from time to time, so we confirm each position against the current schedule of the Income and Sales Tax Department before a return is filed.