Advantages of Investing in Jordan:

Incentives and advantages Outside the Development Zones and Free Zones

The Investment Incentives Regulation issued under the Investment Law specifies goods and services subject to investment incentives in accordance with the following Tables:

 

Table No (1 ) relating to economic industrial or vocational activities:

Table No(1/a) relating to the production inputs, which are:

  • Exempted from custom duties.
  • Subject to the applicable general sales tax when they are imported or purchased locally, provided that the Income and Sales Tax        Department shall refund this paid tax within thirty (30) days from the date of submission of a written refund request thereof. If        the Income and Sales Tax Department fails to refund such tax within this period, then it shall pay (9%) interest on an annual basis.

 

Table No(1/b )relating to production inputs, which are:

  • Exempted from custom duties.
  • Subject to a reduced general sales tax of (zero) percent.

 

Table No(1/c) relating to production requirements and fixed assets, which are:

  • Exempted from custom duties.
  • Subject to a reduced general sales tax of (zero) percent.

 

Table No (1/d) relating to dual use production requirements and fixed assets, which are:

  • Exempted from custom duties.
  • Subject to a reduced general sales tax of (zero) percent.

Table No (2) relating to services necessary for practicing economic, industrial or vocational activities and the economic activities included in Table No (3) which are:

Subject to the applicable general sales tax when they are imported or purchased locally, provided that the Income and Sales Tax Department shall refund this paid tax within thirty (30) days from the date of submission of a written refund request thereof. If the Income and Sales Tax Department fails to refund said tax within this period, then it shall pay (9%) interest on an annual basis.

 

 

Table No (3) Relating to the commodities  necessary for the below mentioned economic activities:

Agriculture and livestock.

  • Hospitals and specialized medical centers.
  • Hotels and tourist facilities.
  • Entertainment and tourist recreation facilities.
  • Call centers.
  • Scientific research centers and scientific laboratories.
  • Artistic and media production.
  • Conference and exhibition centers.
  • Transport and/or distribution and/or extraction of water, gas and oil derivatives by using pipelines.
  • Air transport, sea transport and railways.

 

These activities are granted the following incentives:

  • Exempted from custom duties.
  • Subject to a reduced general sales tax of (zero) percent when they are imported or purchased locally.
  • Under the Income Tax Regulation for the Less Developed Regions, the tax due on economic, industrial and vocational activities related to table (3) above shall be reduced according to the following table, provided that the income tax payable for any activity after the reduction shall be not less than (5%) of the taxable income.

 

CategoryRegion DurationReduction
A.Covers (the Northern Valley, Deir Alla, South Shuneh, Southern Valley, Al Rweished, the Northwestern Desert, Al Jizeh with the exception of the boundaries of the Al Jizeh Al Jadideh Municipality, Al Muwaqqar with the exception of the boundaries of the Muwaqqar Municipality), the Aqaba Governorate with the exception of the Aqaba Special Economic Zone, and Al Azraq District.20 years100%
B.Covers the Governorates (Maan, Tafilah, Karak, Ajloun)20 years80%
C.Covers the Governorates (Jarash, Mafraq, Irbid with the exception of the boundaries of the Greater Irbid Municipality)20 years60%
D.Covers the Governorates (Amman with the exception of the boundaries of the Greater Amman Municipality, Zarqa with the exception of the boundaries of the Zarqa Municipality, Madaba, Balqa) until the boundaries of Russeifeh.20 years40%

Economic activities that benefit from the reduction of income tax in the less developed regions may be granted an additional extension of no more than (10 ) years in accordance with the rules and conditions stipulated in the Regulation.