Jordan Transfer Pricing Documentation Requirements
Jordan requires a Master File and Local File where a taxpayer's related-party transactions exceed JOD 500,000 over twelve consecutive months, with a disclosure form filed alongside. Late-filing penalties are not currently applied, although the tax authority retains the power to impose a JOD 500 penalty for non-submission.
Requirements at a glance
| Requirement | Threshold | Deadline | Deadline type | Language | Penalty |
|---|---|---|---|---|---|
Master File Required | Related-party transactions exceeding JOD 500,000 over 12 consecutive months | 12 months after fiscal year-end | Preparation deadline The documentation must exist by the date shown and is produced only when the tax authority requests it. | EN | Up to JOD 500 where documentation is not submitted as required |
Local File Required | Same JOD 500,000 threshold as the Master File | 12 months after fiscal year-end | Preparation deadline The documentation must exist by the date shown and is produced only when the tax authority requests it. | EN | Up to JOD 500 where documentation is not submitted as required |
Disclosure form Annual filing | Taxpayers within the transfer pricing rules | With the annual filing | Submission deadline The documentation must be filed with the tax authority by the date shown. | EN | Yes |
CbC report Required | Group revenue ≥ JOD 600m | 12 months after fiscal year-end | Submission deadline The Country-by-Country report is filed by the group's ultimate parent entity; a local notification identifying the reporting entity is filed separately. | — | Yes |
Calculate your exact Jordan deadline
Enter your entity’s fiscal year-end to return your exact Jordan preparation or filing date. Available without registration.
Scope of the documentation obligation
A taxpayer whose related-party transactions exceed JOD 500,000 within a period of twelve consecutive months is subject to the transfer pricing rules and must prepare a Master File and Local File, supported by a disclosure form. The documentation is prepared by reference to a calculated date following the year-end. The same JOD 500,000 threshold governs both the Master File and the Local File.
Distinctive features of the Jordanian regime
The defining feature of the Jordanian regime is its current restraint on penalties. The tax authority does not at present apply late-filing penalties for transfer pricing documentation, although it retains the authority to impose a penalty of JOD 500 where required documentation is not submitted as the law requires, so the practical enforcement posture is lighter than the statutory position. The twelve-consecutive-month measurement window for the threshold is also notable, framing the test around a rolling period rather than the fiscal year alone. Aggregation is the preferred approach where transactions are economically linked.
Benchmarking and comparables
Local comparables are preferred over foreign comparables, with the tax authority expected to accept foreign comparables where no local comparables are available. The choice between single-year and multi-year testing is not specified, nor is the frequency of a fresh search. The general limitation period applies, allowing additional assessments for four years from the date the return is submitted.
Frequently asked questions
What is the threshold for transfer pricing documentation in Jordan?
Related-party transactions exceeding JOD 500,000 over a period of twelve consecutive months bring a taxpayer within the rules and the Master File and Local File requirement.
This guide is an informational research aid prepared by Comp-Press and is not tax or legal advice. Transfer pricing rules change; verify current requirements before relying on them for filing.