Income Tax Department

The Income Tax Department was established as a section under the Ministry of Finance upon the issuance of the first Income Tax Law in 1933. It then became an independent department in 1951, where it carried out its work pursuant to Law No. (50) of 1950. Since then, tax legislation has undergone numerous amendments aimed at development and keeping pace with economic and social developments in order to address gaps arising as a result of application.

The Kingdom is considered one of the first countries in the region to introduce the concept of self-assessment in accordance with the provisions of the Temporary Income Tax Law No. (34) of 1982. This was followed by Income Tax Law No. (57) of 1985, which remained in force until the issuance of Temporary Law No. (28) of 2009, which aimed to enhance the national economy, encourage the investment environment, and simplify tax system procedures by improving the legal framework and reducing the tax burden on most citizens by exempting a large proportion of low- and middle-income earners. Finally, Income Tax Law No. (34) of 2014 was issued and came into force on 1/1/2015, which reinstated the progressive nature of the tax, a demand of all social and economic segments, and which was amended by virtue of Amended Law No. (38) of 2018, effective as of 1/1/2019.

General Sales Tax Department

The General Sales Tax Department was established, and the implementation of sales tax in the Kingdom began on a limited scale with reduced tax rates as of 31/5/1994, which is the date of publication of the General Sales Tax Law No. (6) of 1994 in Official Gazette No. (3970).

Tax legislation then went through several developments, during which the scope of the tax was expanded to include many goods and services successively, until Law No. (36) of 2000 was issued and came into force as of 1/1/2001, marking the beginning of an application similar to the value-added tax system applied globally. Legislation continued to develop until it reached the current form of the sales tax, in light of the amendments introduced under Temporary Amended Law No. (29) of 2009 and Amended Law No. (26) of 2012. These amendments aimed to achieve equality and fairness among taxpayers, encourage investment, reduce double taxation, and achieve comprehensive reform within the framework of sustainable economic and social development, while preserving the rights of both the Treasury and taxpayers.

The latest amendment was based on a set of key pillars aimed at achieving overall harmony within the tax legislation system, most notably the unification of audit, assessment, and appeal procedures for both income tax and sales tax, which enhances transparency and clarity in tax treatment and contributes to simplifying procedures.

Merging the Income Tax Department and the General Sales Tax Department into One Department

The Income Tax Department and the General Sales Tax Department were administratively merged into a single department under the name “Income and Sales Tax Department” as of 16/8/2004, pursuant to the Amended Income Tax Law No. (31) of 2004 and the Amended General Sales Tax Law No. (32) of 2004, published in Official Gazette No. (4672) dated 16/8/2004.

The Department has worked diligently over the past years to update tax policies and develop the tax administration system by enhancing the efficiency and effectiveness of tax audit and collection processes and increasing tax awareness,

which has led to increased tax compliance. In addition, the Department has worked on expanding the tax base and reducing tax evasion.

The Department has also expanded the provision of electronic services, in addition to developing the skills, capabilities, and expertise of its tax staff, in order to achieve tax justice and transparency through the standardization of procedures and strengthening relationships with the Department’s partners, with the aim of supplying the public treasury with revenues to enable it to carry out its duties toward the country and citizens.

The Department has been keen to implement structural reforms in accordance with best international practices, whereby it has become the first fully digital government entity in the Kingdom. The Department has also expanded its electronic services, reaching 70 e-services in 2025, which eliminate the need for taxpayers to visit service centers. Artificial intelligence technologies have been introduced for auditing tax returns, and digital control has been applied to factories.

The Department has also strengthened governance and transparency measures by enhancing the efficiency of tax audit and collection and adopting best professional practices in tax auditing and inspection, which has improved its efficiency through the use of modern technologies and facilitated procedures for taxpayers.

The Department has launched several initiatives to support taxpayers, including the “Golden List” initiative for compliant taxpayers. In a pioneering step at the regional level, the Income and Sales Tax Department launched the National Electronic Invoicing System at the end of 2022 as part of tax reforms in the country. This system represents an important step toward enhancing transparency in commercial and economic transactions, as it obliges all entities and individuals engaged in the sale of goods or provision of services to issue electronic invoices.

The Jordanian National Electronic Invoicing System has contributed to improving the business environment, reducing human intervention, and accelerating and simplifying financial procedures related to auditing tax files.

The Income and Sales Tax Department continues its efforts to develop a fair and transparent tax environment that supports economic growth and enhances the level of services provided to both citizens and investors alike.

Last updated on: 14 April 2026