Tax
A 20 per cent general corporate rate, sector-specific higher rates, and 16 per cent sales tax
Corporate income tax is 20 per cent generally, with higher rates for banks, telecommunications, insurance and mining. General sales tax, functioning as a VAT, is levied at a standard 16 per cent.
Key rules
- Jurisdiction — National, with reduced rates inside Aqaba and development zones.
Governing law
- Income Tax Law No. 34 of 2014, as amended in 2018
- General Sales Tax Law No. 6 of 1994, as amended
In practice
The 2018 amendments raised sector rates — banks pay 35 per cent, telecommunications and insurance 24 per cent — and broadened the base as part of an IMF programme. General sales tax operates on invoice-credit mechanics like a VAT despite the name. Jordan has a reasonable treaty network and transfer pricing regulations introduced in 2021, which brought documentation requirements into line with OECD practice. The zones are the main planning consideration: Aqaba's 5 per cent rate and development zone rates well below the national level make location a first-order tax question.