This article provides an in-depth summary of the corporate tax regime in Jordan for 2025, including applicable rates, surtaxes, and key compliance requirements. All information is based exclusively on the most current official data available.
Overview of Jordan’s Corporate Tax System
Jordan applies a progressive corporate tax structure to resident companies. The system’s complexity comes not from a single flat rate, but in industry-specific applicable rates and supplementary surtaxes. Companies are taxed on their income generated in or sourced from Jordan, with assessment carried out on a corporate basis.
Corporate Tax Rates in Jordan (2025)
While official documentation indicates a progressive tax regime, the precise income brackets for different rates are not fully published for 2025. However, current data lists three main statutory tax rates linked to business type rather than strictly to income brackets. Please refer to the following table outlining the principal corporate income tax rates by sector for 2025:
| Company Type / Sector | Tax Rate (%) |
|---|---|
| Banks | 35% |
| Telecommunications Companies | 24% |
| Industrial, Commercial, and Other Companies | 20% |
Current data for exact income bands per rate is not publicly available. This information is often updated by authorities and may differ annually.
Surtaxes on Corporate Profits (2025)
In addition to standard corporate income tax, various sectors face surtaxes. Below is a detailed summary of applicable surtaxes in Jordan for 2025:
| Category / Condition | Surtax Rate (%) |
|---|---|
| Banks and companies engaged in electricity generation/distribution | 3% |
| Companies involved in mining raw materials | 7% |
| Financial intermediation and brokerage firms, currency exchange companies, and legal entities engaged in financial leasing activities | 4% |
| Major telecommunications companies, insurance, and reinsurance companies | 2% |
| Other companies not listed above | 1% |
These surtaxes apply on top of the standard corporate tax rate, increasing the overall effective tax burden for companies in each category.
Assessment and Compliance
Corporate tax is assessed on taxable income generated by the company. The Jordanian Dinar (JOD) is the official reporting currency, and companies must file their returns on the basis of their corporate accounts. There are currently no publicly disclosed minimum or maximum holding periods tied to qualification for particular rates or brackets.
Summary Table: Jordan Corporate Tax and Surtax Structure (2025)
| Company Type / Industry | Standard Tax Rate (%) | Applicable Surtax (%) |
|---|---|---|
| Banks | 35% | 3% |
| Electricity Generation or Distribution | 35% | 3% |
| Mining Raw Materials | 20% | 7% |
| Financial Intermediation, Brokerage, Currency Exchange, Financial Leasing | 20% | 4% |
| Telecommunications, Insurance, Reinsurance | 24% | 2% |
| Other Companies | 20% | 1% |
Pro Tips for Managing Corporate Tax Compliance in Jordan
- Pay close attention to your sector’s classification. Ensure your business is correctly categorized to avoid inadvertent under- or over-payment of taxes and surtaxes.
- Factor in additional surtaxes during tax planning. Calculate your effective tax rate by adding the applicable surtax to the standard corporate rate for your sector.
- Maintain accurate records in JOD for reporting. All corporate tax filings must be in Jordanian Dinar; be prepared for periodic audits by authorities.
- Stay updated with official releases. As tax brackets and rates can be revised, consult Jordan’s official Income and Sales Tax Department for the latest regulations and announcements.
- Review potential local variations. While national rates apply, industry-specific incentives or additional obligations may occasionally be published by Jordanian authorities, especially in strategic sectors.
Additional Resources
For further official details and compliance requirements, visit the Jordan Income and Sales Tax Department homepage.
In summary, Jordan’s 2025 corporate tax regime imposes varying rates according to sector, with significant surtaxes applicable to specific industries. While standard rates appear straightforward, the addition of surtaxes can significantly affect your effective tax position. Businesses are strongly advised to monitor sector classification and remain vigilant in ongoing compliance and tax planning activities.