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 mandatory to have an in-country account in Jordan to process payroll.
Banks are open from 08:30 to 13:00, and some have recently introduced afternoon hours from 16:00 to 18:00.
Friday 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 holiday. Additional hours will be considered as overtime and qualify for compensation of 25% over the regular wage. Except in the event of an emergency, an increase in daily work hours is subject to approval by the Minister of Labour.
Full Name: Hashemite Kingdom
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: 3.0%
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:
A new Tax Law was issued on 1st January 2015 meaning the taxable income in Jordon is 12,000 JD for each taxpayer and an additional 12,000 JD’s for each married taxpayer whose partner is not employed is exempt from taxation.
After excluding the applicable exemptions from the taxable income, the following tax rates are applied to the annual taxable income:
As for the income corporate tax, the amount is as follows:
For payments made by Resident Taxpayers to Non-Residents for taxable activities in Jordan, taxpayers must withhold 10% of gross payments and remit this withholding tax to the tax authorities within 30 days after the due date or payment date, whichever is earlier. This tax is final.
Employers with more than 5 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.