Corporate Tax Features in Jordan Affecting Business Decisions: Strengthening Finance Accountability in Emerging Economies




Corporate Tax, Business Decision, Accounting Framework, VAT compliance


Purpose: This paper attempted to evaluate the attributing factors of corporate tax that impact and influence the financial decision-making of the businesses of Jordan. The attributes of mandatory disclosure of Jordan and opportunities in the financial report have been comprehensively discussed to analyze the financial accountability factor.


Theoretical framework: the paper discussed the hypotheses related to the features of corporate tax that impact the business decisions in Jordan, the sectors of financial accountability in emerging markets, the link between corporate governance and financial reports, and the connection between attributes of taxpayers and VAT compliance.


Design/methodology/approach: the descriptive type of research design is implemented to follow both qualitative and quantitative methods of research. The data were measured and evaluated using correlation, and regression to understand the link and connection between the research variables.


Findings: it can be concluded that there are various factors that impact the decision-making of the businesses in corporations such as the size of the business. Also, there is in rising opportunity for the financial reports and a link between the attributes of the taxpayers and VAT compliance. Moreover, the accounting framework of Jordan is also discussed comprehensively and the strategies that are followed for mandatory disclosure of businesses in Jordan or also discussed. Among the factors, the agency cost and profitability together with financial leverage also have an impact on the decision-making of the businesses.


Research, Practical & Social implications: the stance of financial accountability in emerging economies like Jordan is being discussed with in-depth understanding.


Originality/value: identifying the features of corporate tax that impact the business decisions in Jordan, understanding the sectors of financial accountability in emerging markets, identifying the link between corporate governance and financial reports, understanding the connection between attributes of taxpayers and VAT compliance.



Download data is not yet available.


Al Amosh, H. and Mansor, N., 2021. Disclosure of integrated reporting elements by industrial companies: evidence from Jordan. Journal of Management and Governance, 25(1), pp.121-145.

Al Sawalqa, F.A., 2020. Risk Disclosure Patterns among Jordanian Companies: An Exploratory Study during the COVID-19 Pandemic. Accounting and Finance Research, 9(3), pp.69-84.

ALAWAQLEH, Q.A., 2021. The effect of internal control on employee performance of small and medium-sized enterprises in Jordan: The role of accounting information system. The Journal of Asian Finance, Economics and Business, 8(3), pp.855-863.

Albashabsheh, A.A.N., Alhroob, M.N., Irbihat, B.E. and Javed, S., 2018. Impact of accounting information system in reducing costs in Jordanian banks. International Journal of Research-Granthaalayah, 6(7), pp.210-215.

Al-Dmour, H.H., Algharabat, R.S., Khawaja, R. and Al-Dmour, R.H., 2019. Investigating the impact of ECRM success factors on business performance: Jordanian commercial banks. Asia Pacific Journal of Marketing and Logistics.

Alkayed, H. and Omar, B.F., 2022. Determinants of the extent and quality of corporate social responsibility disclosure in the industrial and services sectors: the case of Jordan. Journal of Financial Reporting and Accounting.

AL-Qatamin, K.I. and Salleh, Z., 2020. Overview of the audit profession in Jordan: Review the change and development of the profession. International Journal of Business Marketing and Management, 5(2), pp.33-38.

Alshirah, M., Lutfi, A., Alshirah, A., Saad, M., Ibrahim, N.M.E.S. and Mohammed, F., 2021. Influences of the environmental factors on the intention to adopt cloud based accounting information system among SMEs in Jordan. Accounting, 7(3), pp.645-654.

Al-Slehat, Z.A.F., Zaher, C., Fattah, A. and Box, P.O., 2020. Impact of financial leverage, size and assets structure on firm value: Evidence from industrial sector, Jordan. International Business Research, 13(1), pp.109-120.

Awawdeh, H.A., Al-Sakini, S.A. and Nour, M., 2020. Factors affecting earnings response coefficient in Jordan: applied study on the Jordanian industrial companies. Investment Management and Financial Innovations, 17(2), pp.255-265.

Calle, M.L., 2019. Statistical analysis of metagenomics data. Genomics & informatics, 17(1).

Chong, J., Liu, P., Zhou, G. and Xia, J., 2020. Using MicrobiomeAnalyst for comprehensive statistical, functional, and meta-analysis of microbiome data. Nature protocols, 15(3), pp.799-821.

Hu, L., Nikolopoulos, E.I., Marra, F. and Anagnostou, E.N., 2020. Sensitivity of flood frequency analysis to data record, statistical model, and parameter estimation methods: An evaluation over the contiguous United States. Journal of Flood Risk Management, 13(1), p.e12580.

Jaara, B., Alashhab, H. and Jaara, O.O., 2018. The determinants of dividend policy for non-financial companies in Jordan. International Journal of Economics and Financial Issues, 8(2), p.198.

Matar, A., Al-Rdaydeh, M., Al-Shannag, F. and Odeh, M., 2018. Factors affecting the corporate performance: Panel data analysis for listed firms in Jordan. Academy of Accounting and Financial Studies Journal, 22(6), pp.1-10.

Mohammad, S.J., Abdullatif, M. and Zakzouk, F., 2018. The effect of gender diversity on the financial performance of Jordanian banks. Academy of Accounting and Financial Studies Journal, 22(2), pp.1-11.

Omar, B.F. and Alkayed, H., 2020. Corporate social responsibility extent and quality: evidence from Jordan. Social Responsibility Journal.

Regmi, R. H. (2022). Remittances and trade balance: A new transfer problem. Remittances Review, 7(1), 3-19.

Shatnawi, S.A., Eldaia, M., Marei, A. and Aaraj, S.A., 2021. The Relationship between Audit Committee Characteristics on Accounting-based Performance (ROA and ROE) as a Measure of Performance Evidence from Jordan. International Journal of Business and Digital Economy, 2(2), pp.15-27.

Suwaidan, M.S., Al-Khoury, A.F., Areiqat, A.Y. and Cherrati, S.O., 2021. THE DETERMINANTS OF CORPORATE GOVERNANCE DISCLOSURE: THE CASE OF JORDAN. Academy of Accounting and Financial Studies Journal, 25(2), pp.1-12.

Tahat, Y., Omran, M.A. and AbuGhazaleh, N.M., 2018. Factors affecting the development of accounting practices in Jordan: an institutional perspective. Asian Review of Accounting.

Tokalıoğlu, Ş., Çiçek, B., İnanç, N., Zararsız, G. and Öztürk, A., 2018. Multivariate statistical analysis of data and ICP-MS determination of heavy metals in different brands of spices consumed in Kayseri, Turkey. Food analytical methods, 11(9), pp.2407-2418.

Trading Economics, 2022. Jordan Corporate Tax Rate. [Online] Available at: [Accessed on: 25th May, 2022]

Tsalavoutas, I., Tsoligkas, F. and Evans, L., 2020. Compliance with IFRS mandatory disclosure requirements: a structured literature review. Journal of International Accounting, Auditing and Taxation, 40, p.100338.

Zraqat, O.M., 2020. The Effect of Voluntary Disclosure on the Cost of Capital: Evidence from Jordan. European Journal of Scientific Research, 157(1), pp.17-26.




How to Cite

Shakatreh, M., Mansour, A. M. A., & Alatyat, Z. A. (2022). Corporate Tax Features in Jordan Affecting Business Decisions: Strengthening Finance Accountability in Emerging Economies. International Journal of Professional Business Review, 7(4), e0739.