Jordan

Jordan officially classifies cryptocurrencies as "virtual assets." The country's stance on digital assets is regulated, having introduced a dedicated legal framework through Law No. 14 of 2025 on Virtual Assets. This law permits the use of virtual assets for payments, investments, and trading, overturning a previous prohibition by the Central Bank of Jordan on financial institutions dealing in crypto. The framework also establishes licensing requirements for Virtual Asset Service Providers (VASPs) and mandates Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance. The Income and Sales Tax Department (ISDT) is the primary authority responsible for administering income tax, which applies to cryptocurrency earnings. The Central Bank of Jordan (CBJ) oversees the broader monetary and regulatory aspects of virtual assets, with the tax implications generally falling under the existing income tax laws as clarified by Law No. 14 of 2025. For individual investors, all cryptocurrency earnings are subject to income tax at progressive rates ranging from 5% to 30%, based on annual income brackets. This includes gains from selling crypto for fiat currency and swapping one cryptocurrency for another. Jordan does not have a separate capital gains tax for virtual assets, instead, all gains are treated as ordinary income and taxed at these progressive rates. There is no preferential tax treatment for holding crypto assets for longer periods, short-term and long-term gains are taxed identically. Specific guidance on the taxation of activities like staking, mining, Decentralized Finance (DeFi) activities, and Non-Fungible Tokens (NFTs) is not addressed in the current regulatory framework. However, exchanging virtual assets for fiat currency (crypto-to-fiat) and exchanging one virtual asset for another (crypto-to-crypto) are both considered taxable events, with gains taxed as ordinary income at the progressive individual rates. Jordan's crypto tax landscape is undergoing implementation following the passage of Law No. 14 of 2025 in June 2025. This law became applicable within 90 days of its passage, and draft regulations are continuously being developed, particularly concerning the licensing requirements for VASPs, such as exchanges and custodians.