Jo Corporate Income Tax

---
name: jo-corporate-income-tax
description: "Conditional Jordan corporate income tax extracts for a 2026 refresh. Covers resident and non-resident legal persons, ordinary and sector rates, specified foreign income, national contribution, withholding, import advances, half-year advances and return timing under Income Tax Law No. 34 of 2014. Amendment currentness, investment-zone treatment and filing procedures remain on hold. Two executable examples compare tax arithmetic, including a sole trader against a company under documented exemption assumptions. Use for Jordan corporate tax research, Jordan CIT, withholding tax, national contribution and ISTD company returns. No filing or incentive claim is cleared by this draft."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/jo-corporate-income-tax"
  jurisdiction: "JO"
  tax_year: "2026"
  last_updated: "2026-11-01"
---

# Jordan Corporate Income Tax

## Who this applies to

**Source currentness hold.** This is a source-cited research draft for the 2026 refresh, not a cleared filing instruction. The clause extracts below are conditional reference material. Before using them for a 2026 position, close the amendment and procedure gaps named in Sources. A read date records the stated read scope, not verification of every later amendment.

Legal persons with income arising in Jordan, whatever the place of payment (art. 3(a)). Net foreign income of a resident arising from funds or deposits from Jordan, and the net income of a Jordanian company's foreign branch shown in audited final statements, are taxed at a flat 10% with no deductions (art. 3(c)).

## Rates, bands and thresholds

| Item | Figure | Conditions | Source |
|---|---|---|---|
| Standard rate | 20% | All legal persons not named below, art. 11(b) | https://www.istd.gov.jo/EBV4.0/Root_Storage/AR/EB_Tenders/%D9%82%D8%A7%D9%86%D9%88%D9%86_%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9_%D8%A7%D9%84%D8%AF%D8%AE%D9%84_34_%D9%84%D8%B3%D9%86%D8%A9_2014_%D9%88%D8%AA%D8%B9%D8%AF%D9%8A%D9%84%D8%A7%D8%AA%D9%87.docx |
| Basic telecoms, electricity generation and distribution, basic materials mining, insurance, reinsurance, financial brokerage, financial companies, finance leasing | 24% | Art. 11(b) | same |
| Banks | 35% | Art. 11(b) | same |
| Industrial reduction | Ended | The art. 11(c) reduction table runs 2019 to 2023 only; this is not a conclusion about other incentive legislation | same |
| National contribution, banks and electricity | 3% | Of taxable income, art. 11(f); art. 11(g) cessation applies to this rate; whether its debt-ratio trigger has occurred is not cleared | same |
| National contribution, mining | 7% | Art. 11(f); art. 11(g) cessation applies to this rate; whether its debt-ratio trigger has occurred is not cleared | same |
| National contribution, brokerage, financial, leasing | 4% | Art. 11(f); art. 11(g) cessation applies to this rate; whether its debt-ratio trigger has occurred is not cleared | same |
| National contribution, basic telecoms, insurance, reinsurance | 2% | Art. 11(f); art. 11(g) cessation applies to this rate; whether its debt-ratio trigger has occurred is not cleared | same |
| National contribution, other legal persons | 1% | Art. 11(f); stops if public debt reaches the permitted ratio, art. 11(g) | same |
| Foreign net income and foreign branch | 10% | Art. 3(c) | same |
| Partnership minimum | JOD 500 a year | General and limited partnerships without proper records, art. 11(h) | same |
| WHT, resident professionals | 5% | Paid by a resident legal person to doctors, lawyers, engineers, auditors, consultants, agents and others named, art. 12(a) | same |
| WHT, taxable deposit interest, commissions and qualifying deposit investment profits paid by banks/financial companies in Jordan | 5% individuals, 7% legal persons | Final for individuals and non-resident legal persons, art. 12(a)(2); excludes interbank deposit interest/profits/commissions and interest/profits for recipients designated by executive instructions. Complete the exclusion check before applying | https://www.moin.gov.jo/ebv4.0/root_storage/ar/eb_list_page/%D9%82%D8%A7%D9%86%D9%88%D9%86_%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9_%D8%A7%D9%84%D8%AF%D8%AE%D9%84_%D8%B1%D9%82%D9%85_34_%D9%84%D8%B3%D9%86%D8%A9_2014_%D9%88%D8%AA%D8%B9%D8%AF%D9%8A%D9%84%D8%A7%D8%AA%D9%87.pdf |
| WHT, non-resident | 10% | Non-exempt income, on due or payment date if earlier, art. 12(b) | same |
| Import advance | 2% of import value | Collected by customs unless a Cabinet exception applies; credit in payment period or up to four subsequent periods, art. 19(a), (e) | same |
| Half-year advance | 40% of tax | Prior-period business gross income above JOD 1,000,000; each advance uses tax from the relevant period statements, or the preceding return if absent; deduct import advances, art. 19(b)-(d) | same |

## The base

Income under art. 3 less expenses the law allows. Dividends distributed by resident LLCs, limited and general partnerships, and public/private shareholding companies are exempt, except distributions received by banks, basic telecoms, basic-material mining, insurance, reinsurance, financial brokerage, financial companies and finance-leasing legal persons (art. 4(a)(8)). This does not establish an exemption for every foreign recipient or instrument. Capital gains inside Jordan are exempt except on depreciable assets, share sales by a legal person, and certain IT company gains (art. 4).

## Deadlines and filing

| Step | Rule | Source |
|---|---|---|
| Return | End of the fourth month after period end: 30 April 2027 for a calendar 2026 year, art. 17(a) | https://www.istd.gov.jo/EBV4.0/Root_Storage/AR/EB_Tenders/%D9%82%D8%A7%D9%86%D9%88%D9%86_%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9_%D8%A7%D9%84%D8%AF%D8%AE%D9%84_34_%D9%84%D8%B3%D9%86%D8%A9_2014_%D9%88%D8%AA%D8%B9%D8%AF%D9%8A%D9%84%D8%A7%D8%AA%D9%87.docx |
| Balance | Before the end of the same month, art. 18(a) | same |
| Advances | Within 30 days of the end of each half year unless executive instructions allow a longer period, art. 19(b) | same |
| Withheld tax | Remit within 30 days of payment, art. 12(e) | same |
| Forms | Separate 2023-onward returns for general companies, banks and financial bodies, Investment Commission registrants, Petra and Aqaba entities | https://www.istd.gov.jo/Ar/List/%D8%A7%D9%84%D8%A7%D9%82%D8%B1%D8%A7%D8%B1%D8%A7%D8%AA_%D8%A7%D9%84%D8%B6%D8%B1%D9%8A%D8%A8%D9%8A%D8%A9 |

Filing workflow is on hold: current return fields, supporting-document requirements, submission confirmation and payment references have not been read. Do not submit using this draft.

## Penalties and interest

Late payment or remittance: 0.4% per week or part of a week, capped at the tax (art. 36). The art. 36(b) exception requires both timely filing and timely payment of the declared tax, followed by a difference no more than JOD 5,000; its charge starts at audit-decision notification. Above that amount art. 36(a) applies. Failure to withhold makes the payer liable as for its own tax from the remittance date (art. 12(e)).

## Cross-border points

Service fees are taxable where work is done in Jordan or its output is used there (art. 3(a)). Transfer pricing falls under Regulation No. 40 of 2021, with disclosure forms and country-by-country notices on ISTD's page (https://www.istd.gov.jo/AR/List/%D9%85%D9%86%D8%B5%D8%A9_%D8%A7%D9%84%D8%A7%D8%B3%D8%B9%D8%A7%D8%B1_%D8%A7%D9%84%D8%AA%D8%AD%D9%88%D9%8A%D9%84%D9%8A%D8%A9); thresholds were not read. Treaty rates are not covered.

## Two worked examples that recompute

Simple: trading company, taxable income JOD 100,000: 20% plus 1%, total JOD 21,000.

```oa-check
name: Standard company, JOD 100,000
inputs:
  taxable: 100000
steps:
  - cit: taxable * 0.20
  - nc: taxable * 0.01
  - total: cit + nc
expected:
  total: 21000.00
```

Decision: JOD 100,000 profit as a single resident sole trader or a company. The sole trader, with JOD 9,000 personal exemption and JOD 1,000 of evidenced qualifying expenditure, pays JOD 20,000. The company pays JOD 21,000, and the dividend to the owner falls under art. 4. On tax alone the sole trader is JOD 1,000 ahead at this profit. Run the same sum on the client's figures: the sole trader's marginal rate is 25%, the company's 21%.

```oa-check
name: Sole trader against company, JOD 100,000
inputs:
  profit: 100000
steps:
  - taxable: profit - 10000
  - sole: 2500 + (taxable - 20000) * 0.25
  - company: profit * 0.21
  - gap: company - sole
expected:
  sole: 20000.00
  company: 21000.00
  gap: 1000.00
```

## Ask the client first

- Sector, as it sets rate and contribution.
- Registration: development zone, free zone, Aqaba, Investment Commission.
- Year end and prior-year gross business income.
- Payments to non-residents and professionals.
- Foreign branches or foreign investment funded from Jordan.

## Sources

| Source | URL | Read on |
|---|---|---|
| Income Tax Law No. 34 of 2014 as amended, ISTD consolidated text: inherited original-author reading of arts. 2, 3, 4 (part), 9 to 12, 17 to 19, 36; closeout reread cached clause output; normal refetch blocked; MOIN supplementary baseline pages 3, 9 and 17 read by independent reviewer and author on 2026-11-01 | https://www.istd.gov.jo/EBV4.0/Root_Storage/AR/EB_Tenders/%D9%82%D8%A7%D9%86%D9%88%D9%86_%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9_%D8%A7%D9%84%D8%AF%D8%AE%D9%84_34_%D9%84%D8%B3%D9%86%D8%A9_2014_%D9%88%D8%AA%D8%B9%D8%AF%D9%8A%D9%84%D8%A7%D8%AA%D9%87.docx; https://www.moin.gov.jo/ebv4.0/root_storage/ar/eb_list_page/%D9%82%D8%A7%D9%86%D9%88%D9%86_%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9_%D8%A7%D9%84%D8%AF%D8%AE%D9%84_%D8%B1%D9%82%D9%85_34_%D9%84%D8%B3%D9%86%D8%A9_2014_%D9%88%D8%AA%D8%B9%D8%AF%D9%8A%D9%84%D8%A7%D8%AA%D9%87.pdf | 2026-11-01 |
| ISTD, tax return forms list, first page read | https://www.istd.gov.jo/Ar/List/%D8%A7%D9%84%D8%A7%D9%82%D8%B1%D8%A7%D8%B1%D8%A7%D8%AA_%D8%A7%D9%84%D8%B6%D8%B1%D9%8A%D8%A8%D9%8A%D8%A9 | 2026-11-01 |
| ISTD, transfer pricing page, file list read | https://www.istd.gov.jo/AR/List/%D9%85%D9%86%D8%B5%D8%A9_%D8%A7%D9%84%D8%A7%D8%B3%D8%B9%D8%A7%D8%B1_%D8%A7%D9%84%D8%AA%D8%AD%D9%88%D9%8A%D9%84%D9%8A%D8%A9 | 2026-11-01 |

Not yet confirmed: amendments after Law No. 38 of 2018 (the Official Gazette was not searched); Aqaba rates; art. 4 read only in part; Regulation No. 40 of 2021 thresholds; the old 10% to 14% industrial rates, which have no basis in art. 11 as read; development/free-zone rates and sales-tax/customs relief under current investment legislation (the inherited art. 11(i) extract states 5% for manufacturing with at least 30% local value added, 10% for other development-zone activities, and ordinary activity rates for sales inside free zones); art. 11(j) inter-company holdings of at least 10% and the 10% tax cap; the old dividend WHT statement for non-residents; national-contribution treatment of non-resident WHT. All income-law computations remain non-operative until the amendment check is closed (hold JO-IT-CURRENT).

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-11-01. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `jo-corporate-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/jo-corporate-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.