Jordan Investment Income Guide 2026

Dividend Taxation — 0% WHT

Dividends paid by Jordanian companies are not subject to withholding tax under Jordanian law. The rate is 0% for both residents and non-residents. This makes Jordan a particularly attractive jurisdiction for dividend income. Dividends received by Jordanian resident individuals are generally exempt from income tax and do not need to be included in the annual return. For companies, dividends received from other Jordanian companies are also exempt from CIT under the participation exemption.

Interest Taxation — 10% WHT

Interest income from various sources is subject to withholding tax as follows:

• Bank deposits (resident individuals): 10% WHT (final tax)
• Bank deposits (resident companies): 10% WHT (creditable against CIT)
• Non-residents: 10% WHT (or lower treaty rate)
• Government bonds: Interest from government securities is exempt from tax for both residents and non-residents
• Corporate bonds: 10% WHT for residents

Royalty Taxation — 10% WHT

Royalties paid for the use of intellectual property, patents, trademarks, copyrights, and similar rights are subject to withholding tax at 10% for both residents and non-residents. Jordan's double tax treaties typically reduce the WHT on royalties to 5–8% for qualifying recipients.

Capital Gains on Securities

Capital gains from the sale of securities are subject to varying treatment depending on the type of security:

• ASE-listed shares (held >1 year): Exempt from CGT
• ASE-listed shares (held <1 year): Subject to CGT at standard rates; gains from speculative trading may be taxed as business income
• Private company shares: Subject to CGT at 15%
• Government bonds: Gains on sale are exempt from tax

Amman Stock Exchange (ASE)

Trading on the ASE benefits from favourable tax treatment. Capital gains on shares held for more than one year are exempt from CGT. Dividends on ASE-listed shares are exempt from WHT (0%). There is no securities transaction tax or stamp duty on trades. These features make the ASE an attractive market for long-term equity investors.

FAQs

Is rental income considered investment income?

No, rental income is classified as property income and is subject to IIT as ordinary income (see the rental income guide for details).

Are foreign dividends taxable in Jordan?

Jordanian tax residents must declare foreign dividend income in their annual return. A foreign tax credit may be available for taxes paid in the source country.

Can I reclaim excess withholding tax?

Yes, if tax has been withheld at a rate higher than the applicable treaty rate, the taxpayer may apply to ISTD for a refund.

Disclaimer

This guide provides general information about Jordanian investment income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Jordanian tax advisor or the Income and Sales Tax Department for advice specific to your situation. InvestmentKit does not provide tax advice.