Jordan Non-Resident Withholding Tax (WHT) Calculator
Determine cross-border withholding tax obligations under the Jordanian Income & Sales Tax Department (ISTD). Computes statutory 10% WHT on foreign services, royalties, and loan interest, commercial contract gross-up formulas (`Net ÷ (1 - Rate)`), and Double Tax Treaty (DTA) concessions.
Cross-Border Invoice & Contract Details
Microsecond EngineISTD Cross-Border Tax Settlement
| Statutory Settlement Item | Legal Mechanism / Rule | Financial Consideration |
|---|---|---|
| Commercial Invoiced Consideration | Agreed Commercial Contract Sum | JOD 0.00 |
| Gross-Up Adjustment Addition | Net ÷ (1 - Rate) Base Expansion | + JOD 0.00 |
| Declared Taxable Base with ISTD (الوعاء الضريبي) | JOD 0.00 | |
| Withholding Tax to ISTD (Article 12) | 10.0% Remittance within 30 days | JOD 0.00 |
| Net Wire Remittance to Foreign Payee (الحوالة المصرفية) | JOD 0.00 | |
Statutory Benchmark: Jordan Withholding Tax (Article 12) Schedular Rules
| Remittance Category | Statutory Domestic Rate | Typical DTA Treaty Rate | Filing & Remittance Timeline |
|---|---|---|---|
| Management & Consulting Fees | 10.0% Final Tax | 0% to 10% (Often business profits) | Within 30 days of payment/accrual |
| Software Licenses & Royalties | 10.0% Final Tax | 5.0% to 10.0% | Within 30 days of payment/accrual |
| Interest on Offshore Bank Loans | 10.0% Final Tax | 5.0% to 10.0% | Within 30 days of payment/accrual |
| Dividends to Non-Resident Investors | 0.0% (Exempt per Art. 4) | 0.0% (Exempt per domestic law) | Reported in annual corporate return |
Frequently Asked Questions: Jordan Non-Resident Withholding Tax
What types of payments are subject to Article 12 withholding tax in Jordan?
Under Article 12 of Jordanian Income Tax Law No. 34 of 2014, any payment made by a Jordanian enterprise to a non-resident individual or foreign corporate entity for services rendered, royalties, commissions, management consulting, or interest on loans is subject to a 10% final withholding tax.
How does the contract gross-up calculation work in practice?
When a foreign supplier insists on being paid a net contract sum (e.g., JOD 45,000 net without local deductions), the Jordanian paying entity must absorb the tax by grossing up the amount:
Gross Taxable Base = Net Amount ÷ (1 - 0.10) = Net ÷ 0.90 | WHT = Gross Base × 10% For a JOD 45,000 net contract, the reported base is JOD 50,000, and the Jordanian enterprise remits JOD 5,000 directly to the ISTD while transferring JOD 45,000 to the supplier.
What documentation is required to apply reduced DTA treaty rates?
To lawfully apply a reduced treaty rate (e.g., 5% or 7%) under a Double Tax Agreement, the Jordanian payer must obtain and submit to the ISTD: (1) an official, certified Tax Residency Certificate (TRC) issued by the foreign tax authority for the relevant tax year; (2) a non-resident declaration form; and (3) an attested copy of the underlying commercial agreement.
What are the statutory deadlines and penalties for late WHT remittance?
Under Article 12(b), the withholding tax must be deposited with the ISTD within 30 days from the payment or accrual date. Failure to withhold or remit on time makes the Jordanian paying entity personally liable for the uncollected tax, plus an automatic statutory late payment interest penalty of 0.4% per week.
Is software-as-a-service (SaaS) or cloud hosting subject to Jordanian WHT?
Under recent ISTD technical interpretations, subscriptions to foreign cloud hosting, software licenses, and digital platforms are characterized as royalty payments or technical services and are subject to the 10% withholding tax unless protected by specific DTA treaty business profits provisions.