![[GPA Members Only] Jordan – Statutory Change Alert](http://globalpayrollassociation.com/cdn/shop/articles/GPA_AleRTS_7849e7b1-2524-4798-9d2b-c3afbd5411ef_1200x.png?v=1578301564)
Jordan amends personal tax exemptions effective from January 1, 2020.
In November 2019, the Ministry of Finance for Jordan introduced Finance (Amendment) Bill 2020, which lowers annual personal tax exemption by JOD 1,000 per person. In accordance to the new bill, the following tax exemptions and brackets apply to salaries paid from January 1, 2020 to Jordanian tax residents:
|
Annual Income (in JOD) |
|
|
|
From |
To |
Tax Rate/Minimum Tax Amount in JOD |
|
Annual Personal Tax Exemptions |
||
|
1 |
9,000 |
0% - If marital status is either single or married and spouse is employed |
|
1 |
18,000 |
0% - If marital status is married and spouse is NOT employed |
|
Personal income exceeding the above exemptions will be subject to the following income tax rates |
||
|
1 |
5,000 |
5% |
|
5,001 |
10,000 |
10% |
|
10,001 |
15,000 |
15% |
|
15,001 |
20,000 |
20% |
|
20,001 |
1,000,000 |
25% |
|
1,000,001 + |
30% |
|
Total annual net income should be rounded to the nearest Jordanian piaster for the income tax calculation purposes.
This information was provided to you by Mercans
About Mercans
Mercans is a fully integrated global payroll, PEO and HR services provider. This means that as our client you get access to our cutting-edge global payroll software, local in-country payroll, compliance and HR specialists, and tax and HR advisory service entirely without having to deal with the complexities of setting up local legal entities or in-house payrolls.
Phone UK: +44 20 328 777 62
Phone US: +1 646 798 5541
Phone UAE: +971 43 999 260
Email: info@mercans.com
www.mercans.com
Jordan amends personal tax exemptions effective from January 1, 2020.
In November 2019, the Ministry of Finance for Jordan introduced Finance (Amendment) Bill 2020, which lowers annual personal tax exemption by JOD 1,000 per person. In accordance to the new bill, the following tax exemptions and brackets apply to salaries paid from January 1, 2020 to Jordanian tax residents:
|
Annual Income (in JOD) |
|
|
|
From |
To |
Tax Rate/Minimum Tax Amount in JOD |
|
Annual Personal Tax Exemptions |
||
|
1 |
9,000 |
0% - If marital status is either single or married and spouse is employed |
|
1 |
18,000 |
0% - If marital status is married and spouse is NOT employed |
|
Personal income exceeding the above exemptions will be subject to the following income tax rates |
||
|
1 |
5,000 |
5% |
|
5,001 |
10,000 |
10% |
|
10,001 |
15,000 |
15% |
|
15,001 |
20,000 |
20% |
|
20,001 |
1,000,000 |
25% |
|
1,000,001 + |
30% |
|
Total annual net income should be rounded to the nearest Jordanian piaster for the income tax calculation purposes.
This information was provided to you by Mercans
About Mercans
Mercans is a fully integrated global payroll, PEO and HR services provider. This means that as our client you get access to our cutting-edge global payroll software, local in-country payroll, compliance and HR specialists, and tax and HR advisory service entirely without having to deal with the complexities of setting up local legal entities or in-house payrolls.
Phone UK: +44 20 328 777 62
Phone US: +1 646 798 5541
Phone UAE: +971 43 999 260
Email: info@mercans.com
www.mercans.com