Jordan/ 5.1 General legislation  

5.1.5 Tax laws

Income taxes starts at 7% for those earning over 14,000JD per year, and people earning under 12,000JD per year are exempt from income taxes.[1]


Tax laws for arts and culture are vague, and are grouped within a selection of goods and services:


Article (22)
(1) Goods and services imported or locally purchased to the benefit of the following bodies shall be zero rated:

(2) Mosques, churches, orphanages, elderly people and handicap centres, sport and cultural clubs (which may translate from Arabic to English to mean cultural centres), and individuals with special needs.
[2]


Income tax The Income Tax Law of 1995


Article (3.1)
Regarding profits or gains from any work, craft, business, profession or vocation regardless of the period during which such work, business, profession, craft or vocation may have been carried out or exercised and from any separate transaction or deal which is considered as trade or business.


Article (7)

A) The following shall be fully exempt from Income Tax:

3- The income of Trade Unions accrued from business not for the purpose of profits.

4- The income of cooperative societies derived from a business for not-for-profit purposes.

5- The income of any religious, charitable, educational, cultural, sport and health institutions of a public nature accrued from income for not-for-profit purposes as well as income of charitable Waqfs (trusts), and the income of Orphanage investments.


B) Any person is permitted to deduct from his taxable income any amount which he paid in the Kingdom as a donation or contribution to a charitable or humanitarian, scientific, cultural or sporting cause, if such cause has been recognised by the Council of Ministers provided that deductible amounts under the provisions of this law do not exceed one quarter of the taxable income before making this deduction and after making the deduction provided for in Para (A) of this article.


The laws present many loop-holes, on the one hand there is no clear definition of the cultural worker and the different working titles within the field. So under the broad title of culture and crafts, there is no clear identification of what may fall under the Income tax payments or exemptions.



[1] http://www.istd.gov.jo/ISTD/Arabic/Legislations/LatestLaws/
[2] (http://www.ssc.gov.jo/english)

Income taxes starts at 7% for those earning over 14,000JD per year, and people earning under 12,000JD per year are exempt from income taxes.[1]

 

Tax laws for arts and culture are vague, and are grouped within a selection of goods and services:

 

Article (22)

(1) Goods and services imported or locally purchased to the benefit of the following bodies shall be zero rated:

(2) Mosques, churches, orphanages, elderly people and handicap centres, sport and cultural clubs (which may translate from Arabic to English to mean cultural centres), and individuals with special needs.[2]

Income tax The Income Tax Law of 1995

 

Article (3.1)

Regarding profits or gains from any work, craft, business, profession or vocation regardless of the period during which such work, business, profession, craft or vocation may have been carried out or exercised and from any separate transaction or deal which is considered as trade or business.

 

Article (7)

A) The following shall be fully exempt from Income Tax:

3- The income of Trade Unions accrued from business not for the purpose of profits.

4- The income of cooperative societies derived from a business for not-for-profit purposes.

5- The income of any religious, charitable, educational, cultural, sport and health institutions of a public nature accrued from income for not-for-profit purposes as well as income of charitable Waqfs (trusts), and the income of Orphanage investments.

 

B) Any person is permitted to deduct from his taxable income any amount which he paid in the Kingdom as a donation or contribution to a charitable or humanitarian, scientific, cultural or sporting cause, if such cause has been recognised by the Council of Ministers provided that deductible amounts under the provisions of this law do not exceed one quarter of the taxable income before making this deduction and after making the deduction provided for in Para (A) of this article.

 

The laws present many loop-holes, on the one hand there is no clear definition of the cultural worker and the different working titles within the field. So under the broad title of culture and crafts, there is no clear identification of what may fall under the Income tax payments or exemptions.



[1] http://www.istd.gov.jo/ISTD/Arabic/Legislations/LatestLaws/

[2]               (http://www.ssc.gov.jo/english)


Chapter published: 04-05-2016


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