Free invoice generator and tax tools for Jordan

Jordan taxes business profit under the Income Tax Law No. 34 of 2014, as amended by Law No. 38 of 2018, and the Income and Sales Tax Department (ISTD) collects it. Article 23 makes every taxpayer keep books, records and financial statements that follow international accounting standards and are audited and certified by a certified public accountant. They are kept for four years from the last of three dates: the end of the tax period, the filing of the return, or notification of an administrative assessment. A regulation may excuse some groups from keeping books, but never people working in medical, engineering and legal consultancy.

Much of the tax is collected before the return is filed. Under Article 12, a resident company that pays fees to a doctor, lawyer, engineer, accountant, consultant, agent or broker withholds 5%, and banks withhold 5% on deposit interest paid to individuals and 7% on interest paid to companies. Employment income is withheld under executive instructions. Whoever withholds must remit the tax to ISTD within 30 days of payment, and the amount withheld counts as an advance against the recipient's own tax for up to four years.

Social contributions are not collected by ISTD. Employers register staff with the Social Security Corporation, which sets its own contribution rates, and the Labour Law governs how wages are paid. A business that employs people therefore deals with three bodies: ISTD for tax and invoicing, the Social Security Corporation for contributions, and the Ministry of Labour for employment rules.