Foreign Operating Companies - Branch Offices

Registration fees payable for a Branch Office are JD 250 if the share capital of the
foreign company at its home office does not exceed the equivalent of JD 1 million and
JD 500 if the share capital of the foreign company exceeds the equivalent of JD 1
million.
Income Taxes
Taxation of Companies and Businesses
All companies, local and foreign, operating in Jordan are subject to corporate income tax at
the following rates:
Mining, industry, hotels, hospitals,
transportation, contracting and other
sectors approved by the Council of
Ministers
15%

Taxation of Individuals
The taxable income of an individual is subject to the following tax rates:
Annual Taxable Income Rate
First JD 2,000

5%
Next JD 2,000
10%

Next JD 4,000

15%

Next JD 4,000

25%

Next JD 4,000

30%

Distribution Tax
This tax is levied on the distribution of company profits (i.e., dividends) and amounts
to 10 percent of the dividends paid out.
Universities Tax
This tax is payable by shareholding and foreign companies at a rate of 1 percent of net
income before taxes and distributions.
Social Service Tax
A social service tax is due from each individual and equals 10 percent of the
taxpayer's income.
Sales Tax
The sales tax is fixed at a rate of 10 percent.