Jordan

Taxation

A new income tax law went into effect in 2002 that reduced the top income tax rate to 25% from 30%. The new law also equalized the level of tax exempt income for men and women, at JD1,000 (about $1,418) for both sexes. Income tax rates range from 5% to 25%, with the average tax payer paying a marginal rate of 5%. Corporations are taxed at a rate of 15% (35% for those involved in banking and finance). In January 2001 Jordan entered the second phase of its transformation to a value-added tax (VAT) regime, a reform begun in 1996. The VAT rate is 13%, and in 2001 about 25 new commodities were added to its coverage, including some food products, tobacco, coffee, soft drinks, new cars, heavy-duty vehicles and paper products. Businesses with sales less than JD250,000 (about $355,000) a year are exempt from registering for the VAT. There are no capital gains or net worth taxes on individuals, and social security taxes are paid jointly by employers and employees.

User Contributions:

1

Li Ng

Jul 1, 2007 @ 10:22 pm

when i was in Jordan, I bought a round trip ticket from Amman to Cairo and they later had to pay a penalty charge for making changes for the date of departure. On top of that, they charged me for extra baggage



Can any of these 3 charges be reclaimed for VAT purposes? Also, can one only do so before departing the country?



Thanks and I look forward to your response

2

Li Ng

Jul 1, 2007 @ 10:22 pm

when i was in Jordan, I bought a round trip ticket from Amman to Cairo and they later had to pay a penalty charge for making changes for the date of departure. On top of that, they charged me for extra baggage



Can any of these 3 charges be reclaimed for VAT purposes? Also, can one only do so before departing the country?



Thanks and I look forward to your response

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