The main private company structure in Jordan is the limited liability company (LLC), incorporated under the Companies Law and registered with the Companies Control Department at the Ministry of Industry, Trade and Supply. It is the most common structure for foreign investors, and the registration process allows single-shareholder companies in some cases, usually with approval from the Companies Registrar.

Compliance involves the Companies Control Department for company records, the Income and Sales Tax Department (ISTD) for income tax and sales tax, the Social Security Corporation for payroll, the Ministry of Labour for work permits, the Investment Commission for incentives and sector regulators. Filing is increasingly electronic, and the ISTD has tightened the way it accepts complete filings.

This guide explains the annual cycle for an LLC, with attention to foreign-owned subsidiaries. Updated November 9, 2026. Jordan revises its tax rates and thresholds from time to time, and professional sources differ on corporate rates by sector, so confirm specific figures and dates with the ISTD, the Companies Control Department or a Jordanian auditor.

Entity compliance Jordan: the quick answer

• File the annual income tax return with the ISTD within four months of year-end, which is 30 April for a December year-end, with a complete filing package including audited financial statements.

• File the audited financial statements with the Companies Controller, generally before 30 April according to one source.

• File sales tax returns, generally every two months, and keep withholding tax and payroll filings current.

• Keep the company's registers, hold the annual shareholders' meeting and file changes with the Companies Control Department.

What determines a company's compliance requirements?

Sector, ownership, size and incentives determine the workload. Statutory audit is required for LLCs, and the financial statements are prepared under IFRS. Companies in development zones, special economic zones or approved investment projects may receive tax incentives, which carry conditions and reporting requirements.

Tax status also matters. Jordanian law treats a company registered in Jordan as resident for tax purposes, consolidated returns are not permitted, and each company files its own return. The tax rate varies by sector, with higher rates for banks and financial institutions, so confirm the rate that applies to your business.

Annual entity requirements in Jordan: the core checklist

1. Annual shareholders' meeting

An LLC holds an annual meeting of shareholders to approve the audited financial statements, appoint or reappoint the auditor and decide on the distribution of profits. The meeting should take place within the period set by the Companies Law, generally in the first four months of the year, and the minutes are signed and kept. Written resolutions may be used for single-shareholder companies.

2. Audited financial statements

The financial statements are audited by a licensed Jordanian audit firm and filed with the Companies Controller. One source states that the filing must be made before 30 April. Public and private shareholding companies have additional publication duties, and LLCs should confirm whether sector regulators require extra reporting.

3. Annual income tax return

The ISTD requires companies to file the return and the complete package within four months of year-end. A 2020 circular indicated that incomplete filings are treated as late, with penalties, so the audited financial statements, tax computation and supporting schedules should be ready by the deadline. Late filing penalties are reported at JOD 1,000 for shareholding companies and JOD 300 for other types, plus late payment charges of 0.4 percent per week.

4. Advance payments and tax payment

Tax is generally payable when the return is filed. Jordan also has a system of advance payments based on estimated liability, and one source says that if half-year statements are not ready, the payment is set at a percentage of the previous year's liability. Confirm the current rules with the ISTD or your advisor.

5. Registers and changes

Maintain the register of shareholders, minutes and the commercial registration. Changes in managers, shareholders, capital, address and objects must be filed with the Companies Control Department, often with notarised and legalised documents for foreign shareholders. The company must also renew its trade licence with the municipality and its chamber of commerce membership each year.

Tax and indirect tax obligations

The corporate income tax rate is commonly cited at 20 percent for general commercial companies, with higher rates for banks, insurance and telecommunications, and lower rates for some industrial and development zone activities. A national contribution tax may be added on top at a rate that depends on the sector. Dividends received from Jordanian companies are generally exempt in the hands of the recipient.

General sales tax (GST), which functions like VAT, is 16 percent for most goods and services, with reduced rates for some goods and exemptions for others. Registration is required once taxable sales pass the threshold, and returns are generally filed every two months. Withholding tax of 10 percent applies to interest paid to non-residents, along with a withholding tax on certain service fees, and rates may be reduced by treaties. Jordan has transfer pricing rules that require a disclosure form with the tax return and documentation to be available on request, and a country-by-country threshold of JOD 600 million for large groups.

Foreign-owned subsidiaries

A foreign-owned LLC is subject to the same filing duties. Foreign shareholders may be required to contribute a minimum capital depending on the activity, and some sectors, such as trading, restrict or condition foreign ownership. Check the Investment Commission rules for incentives and the conditions attached.

Dividends paid to a foreign parent are generally not subject to withholding tax in Jordan, but royalties, interest and service fees may be. The tax department expects transfer pricing support for intercompany charges, and payments abroad need contracts and tax clearance in some cases. Foreign directors may need work permits if they work in the country.

First-year and event-triggered obligations

In the first year, reserve a name, register the LLC with the Companies Control Department, obtain a tax number and register with the ISTD, register for sales tax if required, register with the Social Security Corporation, obtain municipality and chamber memberships, and open a bank account. Event-driven filings include changes in shareholders, managers, capital, address, objects and name, as well as mergers, conversions and liquidation.

Closing an LLC requires a liquidation process with creditor notices and tax clearance. A dormant company still has annual filing duties, so a formal closure is usually better than leaving it inactive.

Employment and local requirements

Employers must register employees with the Social Security Corporation and contribute monthly, with employer contributions at roughly the mid-teens as a percentage of salary and employee contributions around 7.5 percent, and these rates have been revised, so confirm them. They withhold income tax from employee salaries and file monthly returns. The Labour Law sets rules on working hours, annual leave, end-of-service, termination and minimum wage, and non-Jordanian workers need work permits through the Ministry of Labour, with quotas and fees in some sectors. Employers must also provide workplace safety and medical insurance as required.

Record-keeping and governance in Jordan

Keep the incorporation documents, articles, registers, minutes, audited financial statements, tax returns, sales tax records, payroll files and work permit records. The tax auditor may audit a return within a limited period after filing, generally up to four years, and companies commonly keep records for at least five years, with a longer period for accounting records under commercial law. Maintain a list of authorised signatories, a record of licences and renewals, and a calendar for ISTD, Companies Control Department and municipality deadlines. Arabic is the language of official documents, so keep certified translations for the parent and banks.

Build a compliance calendar for Jordan

A compliance calendar turns the rules above into dated tasks with named owners. Start from the financial year-end and the incorporation anniversary, then add the recurring monthly and quarterly items. Review it each quarter, because deadlines, extensions and registry systems change.

• Early in the year: shareholders' meeting to approve audited accounts.

• Every two months: general sales tax returns.

• Monthly: payroll tax and social security filings.

• Before 30 April: audited financial statements to the Companies Controller, per one source.

• 30 April for a December year-end: annual income tax return with the full filing package.

• Annually: renew municipality licence and chamber membership.

Common mistakes

• Filing an incomplete tax package and being treated as late.

• Missing the four month deadline because the audit starts late.

• Assuming the same corporate tax rate applies to every sector.

• Paying service fees and interest abroad without withholding tax checks.

• Leaving transfer pricing disclosure out of the return.

• Forgetting to renew licences and memberships.

Entity compliance Jordan: frequently asked questions

What is the main private company type in Jordan?

The limited liability company, registered with the Companies Control Department, is the most common structure for local and foreign investors.

When is the Jordan income tax return due?

Within four months after year-end, which is 30 April for a December year-end, with the audited financial statements included in the filing package.

Does an LLC in Jordan need an audit?

Yes. LLCs must have their annual financial statements audited by a licensed Jordanian audit firm.

What is the sales tax rate in Jordan?

The general rate is 16 percent for most goods and services, with reduced rates and exemptions for some items.

What is the corporate tax rate?

A general rate of 20 percent is commonly cited, with higher rates for banks and other sectors, so confirm the rate for your activity.

Are consolidated tax returns allowed?

No. Each company must file its own return.

How CoverPin can help

CoverPin helps finance, legal and operations teams track entity obligations across countries. See our international entities overview, learn about compliance advisory, or browse more guides in our legal and compliance resources.

This article is general information, not legal, tax or accounting advice. Confirm current requirements with the relevant authority or a qualified local adviser before acting.