Dec 29, 2019 1 min read

Jordan Payroll Outsourcing Alert

Jordan Payroll Outsourcing Alert – Jordan amends personal tax exemptions effective from January 1, 2020.
Global Payroll Outsourcing provider Mercans has issued the following Jordan Payroll Outsourcing alert.

On 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)
FromToTax Rate/Minimum Tax Amount in JOD
Annual Personal Tax Exemptions
19,0000% – If marital status is either single or married and spouse is employed
118,000 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

15,0005%
5,00110,00010%
10,00115,00015%
15,00120,00020%
20,0011,000,000 25%
1,000,001+30%

Total annual net income should be rounded to the nearest Jordanian piaster for the income tax calculation purposes.

The revised income tax brackets are applicable to all taxable employment income earned after
1 January 2020. Therefore, the employers are required to apply the new rates and brackets on all compensation.

Please contact your Mercans’ Jordan Payroll Outsourcing services delivery team for any additional information regarding the implications of the above changes.

 

Most viewed posts

View all posts

Mercans Adds Thought Leader Pete Tilakos to its Board

Pete is a renowned global payroll product strategy leader, HR industry analyst, advisor, and thought leader.

Feb 8, 2023 2 min read

Dubai Multi Commodities Centre (DMCC) Mandates Wages Protection Sys...

This will enable DMCC member companies to pay employees’ wages via banks, exchange houses, and financial institutions approved by the UAE Central Bank.

Feb 8, 2023 1 min read

Norway Announced Income Tax Rate 2023 and Introduced a New Social Tax

A new 5% Social Tax has been introduced for yearly income exceeding 750,000 NOK. The tax will only kick in once the employee's earnings surpass this limit.

Feb 7, 2023 1 min read

Lebanon Announced Tax Rate and Exemption Changes for 2023

In addition, the Lebanese government has announced an official LBP to USD exchange rates to be used for payroll calculation purposes.

Feb 7, 2023 1 min read

Qatar changes Social Security Contribution Rates for GCC Nationals

The General Retirement and Social Insurance Authority (GRSIA) of Qatar has announced changes in the Social Security and Pension Law with updated contribution rates applicable to private sector employees in Qatar, effective from 3 January 2023. The up

Feb 1, 2023 1 min read

Mercans’ HR Blizz is now an IRAS-Certified Payroll Software

Accreditation of HR Blizz by IRAS in Singapore allows businesses to submit their GST and Taxes electronically accurately.

Jan 26, 2023 3 min read