Middle East Insurance Company (MEICO)

Why this matters for Jordan trades

The ISTD administers income tax, 16% general sales tax and the JoFotara e-invoicing system, so contractors issuing invoices should confirm that their accounting software is linked to JoFotara. Under the Construction Contractors Law, no one may practise contracting without registering with the JCCA, and no ministry, municipality, public shareholding company or other entity may sign a works contract with a contractor who is not registered and classified; the Government Tenders Department manages contractor licensing and classification and publishes the Contractor Classification Instructions of 2020. Engineering studies and designs may be prepared only by offices registered with the JEA, companies register with the Companies Control Department (CCD), and employers pay Social Security Corporation contributions of 14.25% of insured wages, with 7.5% from the employee, according to PwC’s tax summary.

Jordanian construction and trades software selection is shaped by JoFotara, the national e-invoicing system run by the Income and Sales Tax Department (ISTD): its invoicing regulation recognises e-invoices issued through JoFotara or software linked to it, and Jordanian press reported that use of the system became mandatory from the start of April 2025. Add 16% general sales tax, Social Security Corporation contributions on insured wages, registration and classification with the Jordan Construction Contractors Association (JCCA) for works contracts, and Jordan Engineers Association (JEA) registration for engineering work.