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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.

 

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