New Draft Income Tax Law 2013

Recently released by Jordanian authorities, the Draft Income Tax Law 2013 is expected to apply from 1 January 2014. The major amendment to the previous regime is the implementation of a gradual tax scale.

According to the draft, an individual is deemed to be resident in Jordan when he resides there for at least 183 days whether continuously or not.

A legal entity is a Jordanian resident when:

• it was set up or registered in accordance with the Jordanian laws in force and where it has a Jordanian branch or office through which its business is managed or supervised,

• the effective management centre is located in Jordan,

• it is owned by more than 50% by a governmental body.