10/01/2022

Income and Sales Tax Department clarified that the total exemptions to which the breadwinner is entitled to the income earned during the year 2021 is (23) thousand dinars, including the personal exemption at the rate of (9) thousand dinars and  (9) thousand dinars as a dependency  allowance, and the exemption of family during the year 2021 in exchange for expenses of  Treatment, education, rent, housing loan interest and Murabaha is amounted  to five thousand dinars, where the law granted one thousand dinars to the taxpayer, one thousand dinars to the spouse of the taxpayer, and one thousand dinars to each child, with a maximum of three children.

The department indicated that the Income Tax Law has arranged a special exemption for each person with a persistent disability in the family at 2,000 dinars for each person, regardless of the number of those who meet the conditions and It is added to personal exemptions, dependency , treatment and education expenses, rent, housing loan interest, and Murabaha  stipulated by law.

With regard to the taxpayer who is not a breadwinner , the law granted him 9 thousand dinars as a personal exemption in addition to a thousand dinars in exchange for expenses related to treatment, education, rent, housing loan interest and Murabaha.

The department  pointed out that a Jordanian non-resident natural person has the right to benefit from the exemptions for dependents residing in the Kingdom if he supports them.

The department indicated to the taxpayer "the female breadwinner" the right to obtain the exemption for the dependents, and in the event of applying to benefit from this exemption from more than one taxpayer with a breadwinner, it is shared according to the dependency ratio, provided that invoices or supporting documents are submitted for that, otherwise it is shared equally among the breadwinners.

The department also clarified that in the event that joint or separate income tax returns are submitted by spouses, the permissible exemption for the taxpayer and his dependents may not exceed (23,000) dinars, and The husband must make sure when submitting the return that obtaining the wife’s dependency is not included if his wife works and submits an income tax return and obtains personal exemption.

The department also clarified that for the purposes of calculating income tax, every family member other than the husband and wife is treated as an independent taxpayer  of the income he earns, and the income he earns is not counted within the income of the head of the family.