Jordan master file and local file requirements (2026)

Who do Jordan's transfer pricing rules apply to?

Any taxpayer with a related party, which catches a foreign parent the moment its Jordanian entity trades with anyone inside the group. Two parties are related where one holds 50% or more of the other's voting rights, profits or capital, alone or together with relatives to the second degree, or where both sit under common control at that level. A wholly owned Jordanian subsidiary clearly meets the test.

The same 50% control line runs through Jordan's income tax statute. The Income and Sales Tax Department publishes the transfer pricing regulation^[1] on its regulations index, and the income tax statute it sits under^[2] carries the same definitions.

Intra-group loans, royalties, management fees and intra-group goods are the flows that pull a parent into local file content.

Do you need a master file in Jordan?

Yes, if your Jordanian entity belongs to a multinational group. There is no published revenue threshold, so group membership alone is the test. The preparation deadline is not confirmed: the regulation delegates content, format, submission method and timing to separate tax department instructions that have not been published.

With the Jordanian content specification unpublished, the working baseline is the OECD standard it mirrors. The OECD documentation standard^[3] sets five master file categories: the group's organisational structure, a description of its businesses, its intangibles, its intercompany financial activities, and its financial and tax positions including consolidated statements.

Do you need a local file in Jordan?

Yes, if your Jordanian entity has related party transactions at all. The only carve-out is for natural persons and small enterprises whose related party transactions stay under JOD 500,000 in any 12 consecutive months. Nothing is filed proactively.

The tax department can require production within a period it sets of at least 30 days, in four listed cases. The preparation deadline itself is not confirmed, for the same reason the master file deadline is not: the enabling instructions are unpublished. On content, the OECD standard Jordan follows asks the local file to cover the entity's management and business strategy, each material category of controlled transactions with its comparability and method analysis, and the local annual accounts.

Does Jordan require country-by-country reporting?

Yes. It applies to groups with combined revenue above JOD 600,000,000 per the prior period's financial statements, and the report is due within 12 months after the end of the group's tax period. Each Jordanian group member notifies the tax department of the ultimate parent, the reporting entity and the filing jurisdiction within the statutory return filing period.

Jordan sets its threshold in dinar rather than adopting the global figure. OECD implementation guidance^[4] fixes the international trigger at EUR 750 million, and Jordan's own implementation is reviewed in the 2024 peer review for Jordan^[5].

What transfer pricing forms does Jordan require?

One: a related party transactions disclosure form, filed with the annual tax return within the statutory return filing period by any taxpayer with related party transactions. This is the only obligation with a hard annual deadline, and it applies whatever your master file and local file position is.

The tax department has published official templates for the local file, the master file, the disclosure form and the country by country report on its portal. The disclosure form is the schedule that attaches to the return itself. The two files sit ready for a later request.

When is Jordan transfer pricing documentation due?

The disclosure form and the notification go in with the annual return. The country by country report follows within 12 months of the group's period end. The two files have no confirmed preparation deadline, because the instructions that would set one are unpublished.

What language and currency does Jordan require?

Not confirmed. The located text of the regulation states no language or currency rule. The tax department operates in Arabic, so a translation requirement is plausible, but this page states only what the primary text supports. Confirm it with your Jordanian adviser before you commit to an English-only file.

What are the penalties for getting Jordan transfer pricing wrong?

The amounts are not confirmed. The transfer pricing regulation sets no fines of its own. It points instead to the penalties in the income tax statute, and those amounts were not read from primary text, so this page states no figure and ships no penalties table.

What is verified is the practical exposure. An unanswered production request leaves you without the support the regulation requires, and the tax department can proceed to an adjusted assessment. The weaker your contemporaneous file, the harder a 30 day window is to meet.

Can you get an advance pricing agreement in Jordan?

No. The regulation contains no advance pricing agreement provision, so there is no route to pre-clear your intercompany pricing before the tax department reviews it. It does provide corresponding adjustments and access to the mutual agreement procedure, which resolve double taxation after an adjustment rather than preventing one.

That absence changes where the work goes. With no ruling route, preparing the file and the benchmarking up front is the only way to control the outcome.

How does Jordan differ from the OECD baseline?

Jordan is an Inclusive Framework member but not an OECD member^[6], which is why it has a three tier documentation regime at all. It then sets its own terms inside that shape.

How we help with Jordan transfer pricing

Jordan gives you a short window and no way to settle pricing in advance, so the file has to be finished before anyone asks for it. We map the related party transactions, build the benchmarking, draft the master file and the local file to the OECD structure Jordan mirrors, and keep the annual disclosure form on the calendar. See how our transfer pricing software works.

Book a demo to map your Jordan documentation obligations before the tax department asks.