Jordan Corporate Income Tax (CIT) Calculator
Evaluate corporate statutory tax obligations under the Jordanian Income & Sales Tax Department (ISTD). Computes sector-specific CIT rates (35% banking, 24% telecom/financial, 20% commercial, 14% industrial), mandatory National Contribution Tax (1%–3%), and advance tax payment credits.
Corporate Profit & Sector Details
Microsecond EngineISTD Corporate Tax Assessment
| Statutory Tax Component | Legal Authority / Rate | Tax Assessed |
|---|---|---|
| Corporate Income Tax (CIT) | Law No. 38/2018: 20% on Net Profit | JOD 0.00 |
| National Contribution Tax (NCT) | Law No. 38/2018: 1% Debt Surtax | JOD 0.00 |
| Gross Statutory Tax Assessed (إجمالي الضريبة المقدرة) | JOD 0.00 | |
| Less: Advance Tax Installments & Withholdings (الدفعات المقدمة) | - JOD 0.00 | |
| Net Settlement Position with ISTD (الرصيد الصافي) | JOD 0.00 | |
Statutory Benchmark: Jordan Corporate Tax Schedular Framework
| Economic Sector | Base CIT Rate | National Contribution (NCT) | Total Effective Statutory Rate |
|---|---|---|---|
| Commercial, Services & Trading | 20% | 1% | 21% |
| Industrial Manufacturing | 14% (Preferential) | 1% | 15% |
| Telecom, Insurance & Finance | 24% | 2% | 26% |
| Mining & Extraction (Phosphate/Potash) | 24% | 3% | 27% |
| Banking & Commercial Banks | 35% | 3% | 38% |
| Development Zones & Free Zones | 5% Concessionary | 0% | 5% |
Frequently Asked Questions: Jordan Corporate Income Tax (CIT)
How is taxable corporate income determined in Jordan?
Under Income Tax Law No. 34 of 2014, corporate taxable income starts from net accounting profit as reported in audited financial statements prepared according to International Financial Reporting Standards (IFRS), adjusted for tax purposes:
Taxable Profit = Audited Net Profit + Non-Deductible Expenses - Statutory Exempt Income Non-deductible items include provisions for bad debts not approved by ISTD, excessive entertainment expenses, and penalties.
What is the National Contribution Tax (رسم المساهمة الوطنية)?
Under Article 66 of Law No. 38 of 2018, the National Contribution Tax is an additional statutory levy ring-fenced to reduce public national debt:
- 3% on taxable income of banks and primary mineral extraction companies.
- 2% on telecom operators, insurance companies, and financial brokerage firms.
- 1% on all other corporate entities with taxable profits exceeding JOD 200,000.
What are the carry-forward rules for corporate tax losses in Jordan?
Under Article 8 of the Income Tax Law, verified operating tax losses may be carried forward and deducted from the taxable profits of subsequent tax years for up to a maximum period of five consecutive years. Loss carry-backs to prior profitable years are not permitted under Jordanian law.
How does the advance tax installment mechanism operate?
Under Article 27, corporate entities are required to make two bi-annual advance tax payments: the first within 30 days after the end of the first half of the tax year, and the second within 30 days after the end of the second half of the tax year. Each installment generally equals 40% of the prior year's assessed tax liability, which is credited against the final annual return.
What are the penalties for late filing or late payment with the ISTD?
Failing to file the corporate tax return by April 30 results in a late filing penalty ranging from JOD 100 to JOD 500, plus an automatic statutory late payment interest charge of 0.4% per week (approximately 1.6% per month) on any unpaid tax balance, accumulating from the statutory due date until full settlement.