In Jordan, many business owners and CEOs unknowingly pay more taxes than they should. This isn’t always because of negligence—it’s often due to limited access to the right guidance, frequent changes in tax laws, or a lack of clarity in financial reporting. As a result, companies miss out on legal deductions, incentives, and tax planning strategies that could significantly reduce their annual tax burdens.
Common Tax Mistakes in Jordan
- VAT Filing Errors: Value-added tax (VAT) continues to be one of the most misunderstood areas. Many companies misclassify transactions, fail to claim eligible input VAT, or submit returns late—leading to penalties.
- Incorrect Income Tax Reporting: Mistakes in calculating taxable income, not accounting for allowable expenses, or failing to reconcile accounting records with tax reports can result in overpayment or fines.
- Missing Out on Exemptions: Jordanian tax law offers several exemptions and incentives, especially for new businesses, exporters, and investments in designated development zones. However, these are often underutilized due to lack of awareness.
Smart Tax Planning: A CEO's Advantage
An effective tax strategy is not about evading taxes—it's about understanding the law and aligning business operations to benefit from it. Here are a few areas CEOs should focus on:
- Engage a tax advisor early: Waiting until the end of the year limits your planning options. A proactive tax consultant can help you design the right structure and track deductions throughout the year.
- Digitize and organize financial records: Clean, timely bookkeeping simplifies tax preparation and supports all claims made in your returns.
- Regular tax reviews: Reviewing past tax filings and comparing them against financial records can help recover overpaid taxes or identify patterns of error.
What Jordanian Businesses Can Do Now
- Conduct a tax health check with a licensed tax consultant
- Review your last 2 years of VAT and income tax filings
- Educate your finance team on recent regulatory changes
Conclusion
As a CEO, your role isn't to handle taxes—but it is your responsibility to ensure that your company isn’t losing money due to poor tax planning. With professional support, clear financial records, and the right awareness of local laws, you can turn tax compliance into a competitive advantage.
At Shura Middle East, we specialize in helping businesses like yours navigate Jordan’s tax landscape with confidence. Contact us today for a free consultation to evaluate your current tax position.