How corporate tax works in Jordan
Jordan applies corporate income tax by sector. The standard rate is 20%, but banks pay 35%, while telecommunications, insurance, reinsurance, financial intermediation, currency exchange, finance leasing, electricity generation and distribution, and mining raw materials generally pay 24% on corporate income.
Jordanian resident corporations are generally not taxed on worldwide income, but income from Jordanian deposits and funds is taxed at 10%. Foreign branches of Jordanian resident corporations are taxed at a fixed 10% rate.
Every legal entity also faces a national contribution tax, ranging from 1% to 7% depending on the sector, and tax returns are generally due by the end of the fourth month after year-end.
Tax rates at a glance
- Standard CIT
- 20%
- Banks
- 35%
- Regulated sectors
- 24%
- Branch income
- 10%
- National contribution tax
- 1% - 7%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Regional operatorsHolding companiesService businessesFinancial firmsInvestors
Watch out for
- Jordan also uses WHT on imported services and certain resident service payments, so corporate tax modelling should include more than the headline CIT rate.
- The country has 16% sales tax, payroll social security and property or transfer taxes, none of which disappear just because the standard CIT rate is 20%.
- I did not find a 2026 enacted headline CIT overhaul in the sources reviewed, so sector classification and WHT compliance remain the bigger risk than a rate change.
Frequently asked questions
What is the corporate tax rate in Jordan?
The standard corporate income tax rate is 20%, but Jordan applies 35% for banks and 24% for several regulated sectors.
Does Jordan tax dividends at company level?
Ordinary dividends paid by Jordan resident companies are generally exempt from withholding tax, but certain regulated sectors can be taxed at the corporate rate on dividend income.
What else should companies model besides CIT?
Companies should model the national contribution tax, WHT on services, 16% sales tax, payroll social security, and the tax filing deadline at the end of the fourth month after year-end.