Judicial principles and studies
Withholding of Income Tax — Foreign (Non‑Resident) Company
A brief summary explaining when a non‑resident's income is subject to withholding under specific Income Tax Law provisions, and when inspection services for goods exported outside Jordan are not taxable.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
The issue concerns when a non‑resident's income is subject to withholding, based on whether the work was performed in the Kingdom or the outputs of the service were used there, pursuant to Articles (3/a/12) and (12/b/1) of the Income Tax Law.
Summary
- The cited provisions imply that income earned by a non‑resident from providing a service is subject to withholding if the activity was carried out within the Kingdom or if the service outputs are used within it. - The presented evidence indicates the amounts at issue were collected on behalf of a foreign company for inspection services of goods exported outside Jordan; since the service was not performed inside Jordanian territory, that income is not considered subject to income tax.
Practical significance
- Determinations on withholding require confirming the place where the service was performed and where its outputs are used. - This content is a general educational summary and not a court text or legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.