Your guide to doing business in Jordan
Companies in Jordan must register for taxes (including corporate tax, income tax, and VAT) by completing the application form and submitting it to the relevant one-stop-shop counter of the Companies Registry. The company obtains a unique Tax Identification Number (TIN).
There are two types of operating companies in Jordan:
Registering a company is mandatory for operating the business in Jordan and the documentation requirement for the registration are as follows:
It is not mandatory to make employee salary payments from an in-country bank account; however, it is mandatory to make third party authority payments from an in-country bank account.
Banks are typically open from 08:30 to 13:00, and some have recently introduced afternoon hours from 16:00 to 18:00.
Friday and Saturday is the weekly holiday when government offices, banks and most offices are closed. Most businesses and banks have a half-day on Thursday, and some businesses and banks take Sunday as a half-day or a complete holiday.
Government departments are open from 08:00 to 14:00 daily, except Friday.
The maximum working hours are forty-eight during a six-day week. The seventh day is a paid weekly day off. Additional hours will be considered as overtime and qualify for compensation of 25% over the regular wage, excluding overtime hours worked during public holiday, which are subject to an overtime compensation of 150% of the standard wage.
Full Name: Hashemite Kingdom
Population: 9.702 million (World Bank, 2017)
Major Languages: Arabic
Currency: Jordanian dinar (JOD)
Main Industries: Clothing, Phosphate Mining, Fertilizers, Pharmaceuticals, Petroleum Refining, Cement, Potash, Inorganic Chemicals, Light Manufacturing, Tourism
GDP Growth: 2.2%
Internet Domain: .jo
International Dialling Code: +962
Hello As-Salām 'Alaykum
Good Morning abā-ul Kh-Ayr
Good Evening Masā' Al-Khayr
Do You Speak English? Hal Tatakallam El-Ingliziyya
Good Bye Bāy Bāy ,Ma`A As-Salāma
Thank You Shukran Jazīlan (Shukran)
See You Soon! Ashoufak 'Ourayyeb
In Jordan, the non-residents are taxed on their Jordan-sourced income. However, married couples are generally taxed separately but they may elect for joint taxation.
Taxable profits include:
The modifications to the previous tax law were published in the Official Gazette on 2 December 2018 with an effective date of 1 January 2019 and 1 January 2020, putting into effect Jordan’s new Income Tax Law No. 38 of 2018 (the New Income Tax Law).
The New Income Tax Law has reduced the amount of exemptions available to natural persons and adjusted the treatment of the end of service benefit and pension in arriving at taxable income. Furthermore, modifications have been made to the tax brackets and rates applicable when calculating the personal income tax liability, and a new national contribution tax has been introduced and made applicable to the net income of high-earning individuals.
Employers with more than five employees are required to register and contribute to the Social Security Corporation. All employees who work for the registered employer have to register with the Social Security Corporation.
Non-Jordanians are subject to the social security deductions if they are residing in Jordan and work for an entity subject to the provisions of the Social Security Law.
According to Law No (1) of 2014, social security rates will be increased in 2015, 2016, and 2017. The increase will be 0.25% on employee share and 0.50% on employer share yearly. This will be fixed after 2017 when employee share will be 7.5% and employer share will be 14.25%.
When a new employee is hired, the employer should submit the ‘Form of insured’s contribution in the Social Security (Form No.1)’ to the Social Security Corporation (SSC) within a maximum of 15 days from the employment start date.
The documents required to register the new starts are as follows-
All leavers must be reported to the Social Security Corporation (SSC) within maximum of 15 days from their last working day.
The employer must report to the SSC the ‘Leavers Contributions Form – From 3 Appendix’ that includes all leavers’ details.