Welcome to the 2022 edition of the MESA Tax guide — our flagship thought leadership publication on tax in the Middle East and South Asia (MESA) region.
The Hashemite Kingdom of Jordan is committed to the promotion of investments for the purposes of achieving comprehensive and sustainable economic development, access to global markets, increased competition, availability of high value-added job opportunities, and funding of development projects.
“Jordan may be small, but it’s rich in terms of its strategic assets. Re-envisioning these assets is vital for our growth. Jordan is a gateway for regional and world trade and business.”
His Majesty King Abdullah II.
In line with His Majesty vision, Jordan Government has introduced a variety of tax incentives under Investment Law 30 for the Year 2014 which aims to attract and encourage both local and foreign investment in Jordan, a 5% reduced corporate income tax rate for technology sector, manufacturing companies, tourism related investments operating carried out inside Development Zones.
Today, it would be fair to say that tax has taken center stage in the boardroom discussions. Thus, the tax leaders of today need to be up-to-date with the changing tax landscapes and keep themselves informed of the cross-border taxation policies. Taxation continues to play a pivotal role in the economic development of the Kingdom. In the last two years major initiatives have been undertaken to create a tax environment which seeks to both encourage investment and raise revenue.
Under the new amendments to income tax law which entered into force effective 1 January 2019, a reduced income tax at rate of 5% is applied on manufacturing companies registered in the Development Zone where the company has an in country value of not less than 30%. Other types of companies registered inside of Development Zones shall be taxed at 10%. Companies registered inside of Aqaba Special Economic Zone shall be subject to a reduced corporate income tax rate of 5%.
In addition, other tax incentives granted to investors in energy sector are in areas of corporate income tax, Withholding tax (WHT), General Sales Tax (GST) and Custom Duties.
Our ‘thinking beyond borders’ approach is imbibed in our tax professionals as a member firm of KPMG global network and helps us deliver long-lasting value to our clients as well as the communities in which we operate. Our tax professionals work closely with the clients to understand their challenges and offer tailored services to these organization.
