Does the 5% tax apply to Islamic bank investment accounts?

Yes, profit shares distributed from Mudaraba investment deposit accounts in Islamic banks in Jordan are treated equally and incur the standard 5% tax.

Is the initial deposited principal taxed at maturity?

No, the principal sum is completely tax-free; statutory withholding applies exclusively to the interest or profit markup earned.

JordanUpdated for 2026Taxes

Jordan Bank Deposit Interest & Yield Tax Calculator 2026

Calculate statutory withholding tax (5%) on bank term deposit interest, savings yields, net earnings after tax, and total maturity payouts under Jordan Income Tax Law.

Taxes & Duties Income Tax & Brackets Banking & Accounts

Calculated Result

Net Interest Yield After Tax

1,045JOD

Calculator Inputs

Deposit Principal Amount

JOD

Annual Interest / Profit Yield Rate (%)

Deposit Term (Months)

Depositor Legal Classification

Net Interest Yield After Tax

1,045JOD

Total Maturity Payout

21,045 JOD

Withheld Income Tax Dues

55 JOD

Gross Interest Yield

1,100 JOD

Deposit Yield vs Tax Breakdown

Net Depositor Yield

1,045 JOD(48%)

Tax Withheld at Source

55 JOD(3%)

Gross Interest Yield

1,100 JOD(50%)

Calculations comply strictly with Article 12 of the Jordan Income Tax Law No. 34 of 2014 and its amendments governing final withholding tax on interest yields.

This calculator is a mathematical model for general financial estimation, planning, and educational guidance. Results depend on your inputs and standard formulas, and do not constitute binding financial, tax, or investment advice. Always consult a qualified professional before making financial decisions.

Official Statute: قانون ضريبة الدخل الأردني رقم 34 لسنة 2014 وتعديلاته - أحكام الاقتطاع الضريبي القطعي على فوائد الودائع والأرباح المصرفية (المادة 12)Last Verified: 2026-09-06

Calculation Methodology

Gross interest yield is computed based on principal, annual percentage yield, and tenure, subject to a statutory 5% final withholding tax deduction remitted by banks.

Frequently Asked Questions

Jordanian commercial and Islamic banks deduct a final withholding tax of 5% on gross interest or profit distributions credited to personal accounts.

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Jordan Bank Deposit Interest & Yield Tax Calculator 2026

Calculator Inputs

Deposit Yield vs Tax Breakdown

Calculation Methodology

Frequently Asked Questions

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