Income Tax Department urges late filers to avoid penalties

Jordan’s Income and Sales Tax Department is urging individuals and businesses who missed the April 30, 2025 deadline for submitting their 2024 income tax returns to act quickly and avoid mounting financial penalties.

Director General Hussam Abu Ali thanked taxpayers who filed on time, commending their cooperation and timely electronic submission. He also praised media outlets for their role in raising awareness and encouraging compliance.

For those who missed the deadline, the department warns of fines ranging from JOD 100 to JOD 500, with an additional penalty of 0.4 percent weekly for further delays, according to tax advisor Mousa Tarawneh in a statement to Roya News.

The department had intensified awareness campaigns leading up to the deadline, emphasizing the importance of tax compliance in boosting public revenues and funding national development projects. Tarawneh stressed the need for accurate filings and timely payments, urging citizens to fulfill what he described as both a legal obligation and a national duty.

Tax filing is mandatory for anyone with business activities, and for employees in the public or private sectors whose annual income exceeds JOD 9,000 for individuals or JOD 18,000 for married persons or dependents. All companies are also required to file.

However, authorities are facing growing challenges with Jordan’s expanding informal economy—unregistered or untaxed businesses, especially active through social media. These include sales of food, clothing, and consulting services conducted without official registration or tax contributions.

Tarawneh noted that recent tax reforms have focused on addressing tax evasion within the shadow economy. He stressed that no personal tax deductions will be accepted unless backed by invoices issued through the national billing system.

This unregulated growth undermines fair competition, causes major revenue losses, and makes enforcement difficult due to the digital and informal nature of these businesses.

Reaffirming the importance of filing, Tarawneh highlighted government efforts to simplify procedures and offer flexibility, such as deferred payment options. Tax revenues, which account for about 26 percent of Jordan’s GDP, are crucial for infrastructure, education, health, and debt repayment.

He concluded by emphasizing that tax compliance is not only a legal requirement but also essential for the country’s financial stability and development.