Judicial principles and studies
Income Tax: Non‑resident Service Income and Inspection of Exported Goods
The study concludes that income earned by a non‑resident for a service not performed in Jordan and whose outputs are not used in Jordan is not subject to income tax under the Income Tax Law and the territoriality principle. This covers fees for inspection of exported goods that were examined outside Jordan.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
The material examines the scope of taxing income of non‑resident persons under Articles 12(a)(3) and 12(b)(1) of the Income Tax Law No. (13) of 2014, in light of the territoriality principle set out in Article (3) of the same law.
Summary
The conclusion is that income of a non‑resident from a service is taxable only where the work or activity was carried out inside the Kingdom or where the outputs of the service are used inside the Kingdom. Therefore, treating amounts paid to a foreign company for inspection services on exported goods as taxable—when the inspection occurred outside Jordan and the results were used outside Jordan—would conflict with the territoriality principle. This reasoning appears in the judicial distinction titled تمييز حقوق هيئة عامة / ضريبة رقم (4351-2024). This is a general educational summary and not a judicial text or legal advice.
Practical significance
This is a general educational summary based on the points published in the official source. It does not replace the original material or a review by Ashraf Al-Khawaja before relying on it for any action.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.