Benefits of Investment in Development Zones
The Investment Ministry 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.
Free zones also enhance Jordan's status as a trade center by facilitating the transit of goods and stimulating economic activity.
Benefits in Development Zones
1. Income tax shall be (5%) of the taxable income of the registered enterprise realized from its economic activity within the development zone with local added-value of not less than (30%) .
2. Income tax shall be (10%) of the taxable income of the registered enterprise realized for the rest of projects and activities.
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.
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
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 maintenance. 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