Free Zones

Benefits of Investment in Development Zones

The Investment Commission regulates the work of development zones and free zones throughout the Kingdom. They are dedicated to various fields of business and industry and are equipped with the investor's needs of infrastructure and services.

These areas are managed by development companies that work to develop the infrastructure and facilitate the work of investors.

Development zones aim to distribute the gains from economic development and create job opportunities by creating a competitive advantage based on specialization and providing an integrated system of services to investors that support the growth and development of enterprises.

Free zones also enhance Jordan's status as a trade center by facilitating the transit of goods and stimulating economic activity.

The Investment Window of the Commission provides simplified registration and licensing services for companies operating in development zones.

Benefits in Development Zone

1. Income tax shall be (5%) of the taxable income of the registered enterprise realized from its economic activity within the development zone.

2. Income tax shall be (5%) of the taxable income of the registered enterprise realized from its economic activity in the industrial sector.

3. Exempted from sales tax are forklifts, vehicles intended to transport ten or more persons including the driver, and which are sold to the registered enterprise for the purpose of transporting workers from and to the work facilities of this enterprise in the development zones.

4. Registered enterprises that exercise their economic activity in the development zone shall enjoy exemptions from custom duties except for export duties, service fees and wages due in accordance with the legislation in force, on: materials, equipment, machinery, supplies, and construction materials involved in the construction, furnishing and equipping of all types of projects that are established by these enterprises in the development zone, including spare parts needed for their continuous maintenance as well as goods imported to the development zone for the purpose of practicing the economic activity or exported therefrom outside the Kingdom.

5. Goods/commodities produced or manufactured in development zones that meet with the conditions of Jordanian origin shall not be subject to custom duties and other fees and taxes when they are placed for consumption in the local market.

6. A (7%) sales tax shall be collected from value of sale of services to be determined in accordance with the regulation in force when they are sold for consumption within the development zone.

7.The percentage of general tax provided for in the General Sales Tax Law on goods and services which the registered enterprise purchases or imports for the purpose of practicing its economic activity within the development zones shall be reduced to (zero), without obligation of the registered enterprise to provide any guarantee to the Income and Sales Tax Department in this respect.

8. Registered suppliers of goods and services shall have the right to request a refund of general sales tax paid by them that was paid on the commodities sold to the enterprises registered in the development zone.

9.The registered enterprise shall benefit from any tax exemptions in force in the Kingdom relating to exports of goods and services outside the Kingdom.

Benefits in Free Zones

Benefits to registered enterprises that practice their activity inside free zones

First :Exemption from income tax on profits for the following:

  1. Exporting goods or services outside the Kingdom.
  2. Transit trade.
  3. Sale and assignment of commodities within the boundaries of the free zones.
  4. Providing and supplying services within the free zone.

Second :Exemption from income tax on salaries and allowances of non-Jordanian employees working in the projects established in the free zone.

Third :Exemption from custom duty and all taxes and fees on goods exported from the free zone to the non-domestic market and on goods imported to it including materials, equipment, machines, supplies, and building materials used in the construction, equipping, and furnishing all types of projects established by said enterprise in the free zone, including the spare parts required for its continued The exemption does not include fees for services.

Fourth :Exemption of buildings and installations built in the free zone from licensing fees, and building and land taxes as well as fees for paving, zoning, and improvement.

Fifth : Permission to transfer foreign currencies and profits generated from it in the free zone in accordance with the provisions of legislation in force.

Sixth :Exporting machines, equipment, materials, commodities, and supplies required to establish any project therein, operate, or expand it as well as the profits generated from it outside the Kingdom in accordance with the provisions of the legislation in force.

seventh :Forklifts and vehicles prepared for transporting ten persons or more including the driver that are sold to the registered enterprise for the purpose of transporting workers from and to the enterprise’s facilities in the free zones shall be exempted from sales tax.

Eighth :Services performed by registered enterprises shall be subject to sales tax at the ratio of zero percent upon selling them for consumption in the free zone.

Free zones

Free zones contribute to enhancing Jordan's status as a commercial center by facilitating the transit of goods and encouraging economic activity.

 

Jordan has more than 40 zones that enjoy the free zone status

List of Free Zones in Jordan
Free ZoneLocation
Zarqa Free ZoneZarqa
Sahab Free ZoneSahab
Queen Alia International Airport Free Zone Airport
Al-Karak Free ZoneKarak
Al-Karama Free ZoneAl Karama
Al Mwaqer/ Muwaqqar Free ZoneMuwaqqar
Indo-Jordan Chemicals Company Ltd.Al Shaydiya
Trans-Jordan Livestock CompanyQweira/ Aqaba
Hijazi and Ghosheh Company for meat and livestockQweira/ Aqaba
Jordan Bromine CompanyKarak
Jordan Magnesia CompanyKarak
Arab Fertilizers & Chemicals Industries LTD (KEMAPCO)Aqaba
Nippon Jordan Fertilizer Co NJFCAqaba
Solvochem Holland B.V. CoAqaba
Middle East Regional Development Enterprises (MEREN)Qweira
Jordan Abyad Fertilizers and Chemicals Co. (JAFCCO)Karak
Jordan India Fertilizer Co (JIFCO)Al-Shaydiya
Jordanian Duty Free Shops CoAmman
Jordan Media City (Dallah Media Production Company)Na’our/ Amman
International Diamond Investment CoSouth Shouna
King Abdullah II Design and Development Bureau (KADDB)Zarqa/ Al –Dulayl
Al-Baha Company For Caustic Chlorine Ind.Zarqa/ AlHallabat
Bayt Al Mal for Saving and Investment  Housing Bank (Baytona)Karama
Jordan International Investment Company (JIIC)Zarqa/ Al-Hallabat
Hikma Pharmaceuticals Co.Amman/ Al-Qastal
International Committee of the Red Cross (ICRC) Amman/ Qweismeh
Jordan Saudi Company for Satellite (JASCO)Amman/ Na’our
Trans Middle East International Distribution Co. LtdAmman/ Al- Taneeb
Jordan Aircraft Manufacturing and Development CompanyQueen Alia International Airport
Jordan Aeronautical-systems Company (JAC)Marka Airport
Jordan Aircraft Maintenance Limited (JorAMCo)Queen Alia International Airport
Jordan Airmotive (JALCo)Queen Alia International Airport
Jordan Airline Training & Simulation Company(JATS)Queen Alia International Airport
Jordan Airline Catering Company (Dnata)Queen Alia International Airport
Jordan Duty Free ShopsMarka Airport
Jordan Air Cargo CompanyMarka Airport
Aviation Handling Services Company LtdQueen Alia International Airport
Information Technology and Industrial Cities Development Company (Cyber City)Irbid
Jordan Gateway Projects Co.King Hussein Bridge
Ad-Dulayl Industrial Park and Real Estate Company (IDMC)Zarqa/ Al-Dulayl
Royal Jordanian Air Academy (RJAA)Marka Airport
Rhodes Precast Concrete LtdZarqa Al Hallabat
Airport Retail Shops CoQueen Alia International Airport
Al Mehaniya Aircraft MaintenanceQueen Alia International Airport

 

The Commission assumes all affairs and powers related to the development zones and free zones including the following:

1.Register the person who wishes to exercise the economic activity in the development zone in accordance with the provisions of the Investment Law.

2.Establish and register the person in the free zone to exercise the economic activity within the free zone or outside of the Kingdom in accordance with the provisions of the Investment Law and the regulation issued for this purpose.

3.Issue all types of licenses and certificates related to the exercise of economic activities in the development and free zones in accordance with the provisions of the Law and the regulations and instructions issued pursuant thereto.

4.Expropriate the lands and real estate necessary for developing the development zones and free zones according to the provisions of the Expropriation Law.

5.Exercise the powers of municipal council within the boundaries of the development zone or the free zone.

6.The Investment Council shall exercise the authorities of the Higher Regulatory Council and form committees under the chairmanship of the president of the Commission that exercise the functions and authorities of district and local committees.

 

Preserve the environment, water resources, natural resources and biological diversity in line with the Environment Law, and the regulations and instructions issued pursuant thereto in co-ordination with the concerned parties.