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8.2.2. Withholding Taxes

The withholding tax (‘WHT’) rates levied on income received / derived by the non-residents from sources within Jordan, unless reduced under a tax treaty, are given below:

Dividend

There is no WHT on dividends paid by Jordan resident entities to non-residents.

Interest

Tax is withheld at 10% on interest paid by Jordan resident entities to non-residents. Further, tax is withheld at 5% on interest paid by resident banks to non-residents.

However, interests paid to non-resident banks and non-resident finance companies on deposits held in Jordan are exempt from WHT.

Royalty Copyright

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Royalty Patent

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Royalty Trademark

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Service Management

Tax is withheld at the rate of 10% on service management fees paid to non-residents.

Service Technical

Tax is withheld at the rate of 10% on service technical fees paid to non-residents.

Others

Tax is withheld at the rate of 2% on value of goods imported for re-sale.

Below is a discussion of domestic withholding tax rules for most of the common cross border payments.

Capital Gains 0.0 %
Dividends 0.0 %
Interest 10.0 %
Royalty Copyright 10.0 %
Royalty Patent 10.0 %
Royalty Trademark 10.0 %
Sales 0.0 %
Service Management 10.0 %
Service Technical 10.0 %

* Rates are current as of 04 December 2022