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.
Tax and banking
Judicial principles and studies
Updated: 10 September 2026
Editorial summary of a judicial principle or decision; consult the source below and do not treat the firm as the author of the decision.
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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.
Key points
- Subject
- Summary
- Practical significance
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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.
Frequently asked questions
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.
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