Domestic companies are subject to income tax on all its sources of income wherever arising.
Foreign working branches (companies) are subject to income tax only on their income from Jordanian sources.
Export sales of goods are only income tax exempted until 31 December 2015, the taxpayer should maintain regular audited accounting records with a separate cost centre for export activities.
Export sales of some services are exempted including accounting services, computer services and feasibility studies services.
Dividends received from domestic companies are exempt from tax.
Company tax is levied as follows:
Domestic companies and foreign operating branches:
- Banks – 30 per cent
- Communication companies, Financial companies, Exchange companies, Insurance companies and Financial lease business – 24 per cent
- Other than – 14 per cent
(Source: PFK, Jordan Tax Guide2013(PDF), May 2013)
Income tax is charged on a progressive rate up to 25 per cent and a 16 per cent sales tax is applied on all goods and services.
Tax Exemption for Approved Projects
Austrade works in conjunction with the Australian Taxation Office (ATO) to administer the income tax exemption available under section 23AF of the Income Tax Assessment Act 1936 (Tax Act).
Section 23AF should assist the international competitiveness of Australian companies and governmental organisations competing to win international tenders. For further information, visit Tax exemptions for approved overseas projects.