Jordan and Switzerland’s new income tax treaty, effective 1 January 2026, sets rates for dividends, interest, royalties, and capital gains.
The income tax treaty between Jordan, Switzerland entered into force on 4 December 2025.
Signed on 13 December 2023, the agreement aims to prevent double taxation on income and curb tax evasion between Jordan and Switzerland. It applies to Jordanian income tax and Swiss federal, cantonal, and communal taxes, covering all forms of income, including earned income, capital income, business profits, capital gains, and other types of income.
Withholding Tax Rates:
Dividends are taxed at 5% if the shareholder holds at least 15% of the company for 365 days; otherwise, the rate is 15%, with exemptions for government, central bank, or pension funds. Interest is generally taxed at 5%, also with exemptions for government, central bank, or pension funds. Royalties are taxed at 5%.
Capital Gains:
Gains from immovable property, business assets of a permanent establishment, or shares deriving more than 50% of their value from immovable property may be taxed in the other state, with exemptions for listed shares or certain company holdings.
The treaty comes into effect from 1 January 2026.
Earlier, Jordan’s Official Gazette on 30 October 2025 published a royal decree approving the double taxation agreement (DTA) and its protocol with Switzerland.
