Jordan has a relatively simple tax system, with a flat corporate income tax rate of 25%. However, there are a number of deductions and exemptions that can be claimed, which can significantly reduce the effective tax rate for mid-size companies.
Here are some of the best taxation strategies for mid-size companies in Jordan:
- Invest in research and development: Jordan offers a 100% deduction for research and development (R&D) expenses. This can be a significant deduction for companies that are actively engaged in R&D activities.
- Export goods and services: Jordan offers a 10% tax credit for exports. This can help to offset the cost of production and make Jordanian goods and services more competitive on the global market.
- Invest in human capital: Jordan offers a 50% deduction for training expenses. This can help companies to upskill and reskill their employees, which can lead to increased productivity and profitability.
- Make use of tax breaks for small and medium-sized enterprises (SMEs): Jordan offers a number of tax breaks for SMEs, such as a reduced corporate income tax rate of 15% and a waiver of the import duty on capital goods.
By taking advantage of these tax breaks and deductions, mid-size companies can significantly reduce their tax liability. This can free up cash flow, which can be used to invest in the business, grow the business, or reward shareholders.
It is important to note that the taxation landscape in Jordan is constantly evolving, so it is important to stay up-to-date on the latest changes. A qualified tax advisor can help you to understand the current tax laws and regulations and develop a tax strategy that is right for your business.
