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flag Jordan Jordan: Business Environment

In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices


Accounting Rules

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
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 refer 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 and 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.

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Tax Rates

Consumption Taxes

Nature of the Tax
 General Sales Tax (GST) - Addaryba al a’mma ala al mabia’t . 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.

Learn more about Service Providers in Jordan on, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
Capital Gains Taxation
Jordan does not tax capital gains.
Main Allowable Deductions and Tax Credits
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.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Jordan Middle East & North Africa United States Germany
Number of Payments of Taxes per Year 25.0 19.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 151.0 184.0 175.0 207.0
Total Share of Taxes (% of Profit) 32.3 32.3 46.7 46.8

Source: Doing Business - Last Available Data.

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Individual Taxes

Tax Rate

Individual Income tax Progressive rate from 0% to14%
JOD 0 - 12,000 0%
JOD 12,001 - 24,000 7%
Over JOD 24,000 14%
Allowable Deductions and Tax Credits
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.

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Double Taxation Treaties

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%.

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Sources of Fiscal Information

Tax Authorities
Jordanian Customs
Income and Sale Tax department of the Jordanian Ministry of Finance
Other Domestic Resources
Jordan Investment Board
Aqaba Special Economic Zone Authority

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Learn more about Taxes and Accounting in Jordan on, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations
The organization in charge of protecting intellectual property is the Department of Trade and Industry.
Jordan is considered to be the country in the Middle East, North Africa region which protects intellectual property the most effectively. It is part of the Paris Convention for the Protection of Industrial Property, and the Nice Agreement concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks. Jordan's joining the Berne Convention for the Protection of Literary and Artistic Works is being studied.
Regional Organizations
Jordan does not belong to any regional organization for the protection of industrial property.

National Regulation and International Agreements

Type of property and law Validity International Agreements Signed
Patent Law 1953
16 years
Trademarks Law 1952
7 years renewable indefinitely
Industrial Design Law
5 years renewable for a period of 10 years  
Law n°22 of 1992
30 years after the death of the author. WIPO Copyright Treaty
Industrial Models
Law n° 14 of 2000
15 years after the registration of the model.  

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Legal Framework

Independence of Justice
The Judiciary is not independent in Jordan and is subject to executive influence through the Ministry of Justice and the Higher Judiciary Council whose members are appointed by the King. 
Equal Treatment of Nationals and Foreigners
Foreign nationals cannot be guaranteed an impartial trial from the country's judicial system.
The Language of Justice
The judicial language is Arabic.
Recourse to an Interpreter
An interpreter can be easily arranged.
Sources of the Law and Legal Similarities
The main source of the law is the constitution of 1952 (amended numerous times). The country’s legal system is based on Islamic law and French codes; as well as judicial review of various legislative acts in a specially provided High Tribunal. The country has not accepted compulsory ICJ jurisdiction. 
Checking National Laws Online
Website where the Jordanian laws are available.

Learn more about Lawyers and Legal in Jordan on, the Directory for International Trade Service Providers.

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National Standards Organizations
JISM, Jordan Institution for Standards and Metrology Committee.
Integration in the International Standards Network
The organization in charge of the standardization of products in Jordan is the Jordan Institution for Standard and Metrology Committee (JISM).
Any product, whether locally manufactured or imported, has to follow the Jordanian national standards which, for the greater part, meet international standards. If there are no national standards for a specific product, this has to match the corresponding international standards. The JISM is a member body of the International Organization for Standardization (ISO), and an associate member of the International Electrotechnical Commission (IEC).
Classification of Standards
JS then a number then the year.
Online Consultation of Standards
Jordanian standards are available on the JISM website. You have to pay to consult them.
Certification Organizations
JISM Jordan Institution for Standards and Metrology.

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Business Practices

General Information
Worldbiz, General website giving information about business practices.
Business culture website.
Opening Hours and Days
Banks: from 9 am to 12.00 pm and from 4 pm to 6 pm Saturday to Thursday.
Public administration: from 8 am to 2 pm Saturday to Thursday.
Shops: from 9 am to 8 pm Saturday to Thursday.
During the month of Ramadan, economic activity is considerable reduced and working hours change.

Public Holidays

New Year's Day 1 January
Labor Day 1 May
Independence Day 25 May
Army Day 10 June
Christmas Day 25 December
Hegirian calendar New Year's Day end December/ beginning January (variable)
Good Friday March (variable)
Easter Monday March (variable)
Birth of the Prophet March (variable)
Eid El Fitr 3 day festival at the end of Ramadan (variable)
Eid El Adha 3 day festival, 70 days after the end of  Ramadan (variable)
Ascension of the Prophet June (variable)
Holiday Compensation
If a public holiday falls on a Saturday or Sunday, the Monday is a holiday instead.

Periods When Companies Usually Close

Eid El Fitr It usually lasts three days at the end of Ramadan. In some regions it can last up to 10 days.
Eid El Adha 3 days, 70 days after the end of Ramadan. It can last 10 days in some regions.
The month of August It is not an official holiday period but during this time
activity really slows down.

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Last Updates: October 2014