Jordan taxes residents on worldwide income and non-residents on Jordan-source income only. Jordan has no Controlled Foreign Company rules, no formal transfer pricing rules (though related-party transactions must be arm's length), and no general anti-avoidance rule - a genuinely simple, minimally-codified anti-avoidance framework relative to most jurisdictions on this site. Jordan operates a self-assessment system.
The Jordanian tax year is the calendar year.
Jordan's headline corporate income tax (CIT) rate is 20-35% depending on sector (banks 35%).
The headline personal income tax (PIT) rate is 30%.
The standard VAT/GST (or equivalent consumption tax) rate is 16% (sales tax).
A natural person is a Jordanian tax resident if they actually reside in Jordan at least 183 days during the year (consecutive or interrupted), or if they are a Jordanian government/public-institution employee working inside or outside Jordan. Residents are taxed on worldwide income; non-residents only on Jordan-source income.
A non-Jordanian entity has a Jordan permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Jordan on the entity's behalf, following the OECD Model Treaty definition as applied under Jordanian domestic law and any applicable tax treaty.
Jordanian tax law has no formal CFC definition or regime - but since residents are taxed on worldwide income directly, foreign-sourced income is already captured without needing a separate attribution mechanism.
A 3:1 debt-to-equity ratio applies to related-party debt (e.g., shareholder loans); interest (including capitalized interest) on related-party debt exceeding that ratio is non-deductible for CIT purposes. No restriction applies to unrelated-party financing.
Jordan does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Jordan does not have a comprehensive ATAD2-style anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists requiring residents to separately disclose foreign accounts; foreign income is reported through the standard annual tax return.
Jordan does not provide a broad participation exemption for foreign dividends; relief from double taxation is available primarily through Jordan's treaty network and foreign tax credit provisions.
Jordan has a foreign tax credit mechanism for foreign tax paid on foreign-source income also taxed in Jordan, capped at the Jordanian tax otherwise due on that income.
Per a detailed compilation from the German-Jordanian Chamber of Industry and Commerce (AHK), Jordan has concluded income tax treaties with 37 named countries: Algeria, Azerbaijan, Bahrain, Bulgaria, Canada, Croatia, the Czech Republic, Egypt, France, India, Indonesia, Iran, Iraq, Italy, Kuwait, Lebanon, Libya, Malaysia, Malta, Morocco, the Netherlands, Pakistan, Palestine, Poland, Qatar, Romania, Saudi Arabia, South Korea, Sudan, Syria, Tunisia, Turkiye, Ukraine, the United Arab Emirates, the United Kingdom, Uzbekistan, and Yemen. PwC independently confirms "over 30" treaties, consistent with this named list. Jordan's own tax authority (ISTD) separately publishes a list of countries it is in active correspondence or negotiation with toward future treaties (44 entries as of the department's most recent update) - that list should not be confused with the concluded-treaty list above, since most of its entries are explicitly marked as pending negotiation rather than in force.