Taxes - Accounting

Jordan

Nature of the tax: VAT is called General Sales Tax - GST. It concerns national products as well as imported ones.
Tax rate: The rate of this tax is 16%.
Reduced tax rate: There are reduced rates for some products. Thus, 91 products (live animals, meats, dairy products, etc...) are subject to VAT at 4%. 6 products and services are subject to VAT at 0%. 18 products (basic foodstuffs, water, gold, etc.) and 31 services (education, health, charity, etc.) are said to be exempt. Income from exports is exempt from taxes.
Other consumption taxes: 9 products (cement, iron bars for building, mineral oils, beer with or without alcohol, ethyl alcohol, wines and spirits, tobacco, cars and subscription services to mobile phones and radios) are subject to a specific tax over and above VAT.

Tax on company income for mining activities, hotels, hospitals, transport, construction contracts.	14%
Communication companies, financial companies (including exchange companies), and financial intermediation companies, insurance companies, and legal persons carrying out financial lease businesses.	24%
Banks	30%

Capital gains taxation: Jordan does not tax capital gains.
Main allowable deductions and tax credit: Companies set up in the special economic areas benefit from exemptions from tax, social security contributions and Customs duties. However, these exemptions vary according to the economic area.
Other corporate taxes: Payroll tax, real property tax, social security contributions, stamp duty, University fee.

Allowable deductions and tax credit: Deductions and allowances are determined at JOD 12,000 for a single person and JOD 24,000 for a family.
Special expatriate tax regime: The income of a non national working for a foreign company is not taxable.

Countries with whom a double taxation treaty have been signed: See the list of conventions signed by Jordan on double taxation
Withholding taxes: Dividends:0, Interest: 7%, Royalties: 7%.
Bilateral agreement: Jordan and Tunisia are bound by a double taxation treaty: yes

Signed	Ratified	Enforced
14/02/1988	Law 88-126 of 04/11/88	01/01/1990

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Tax Authorities: Jordanian Customs; Tax department of the Jordanian Ministry of Finance
Other domestic resources: Jordan Investment Board
Aqaba Special Economic Zone Authority

Tax year: The fiscal year begins on January 1 and ends on December 31 of the same year.
Accounting standards: There are no particular accounting standards. The standards must conform to recognized international principles of accounting and audit .
Accounting regulation bodies: JSC
Accounting reports: Every company must keep a book of accounts, a stock inventory and a register of commercial correspondence. These documents must be kept in Jordan and be written in Arabic or in English.
Publication requirements: The banking sector is obliged to publish its accounts.
Professional accountancy bodies: Arab Society of Certified Accountants
Jordanian Association of Certified Public Accountants
Certification and auditing: The certification and the control of accounts in Jordan refers to the recommendations from the "Jordanian Association of Certified Public Accountants" which adopted, on January 1st 1980, the standards of the International Financial Accounting Standard. Only the auditors who have received this certification are authorized to validate annual reports: Deloitte, Ernst & Young, PricewaterhouseCoopers.
Accounting news: IAS Plus
Website of Zawya, an Internet magazine on economics in the Arab world.
Al Bawaba, economic website about the Arab world.