Jordan Enacts Several Tax Cuts

November 2, 2015 Taxation in Jordan

AMMAN – Business involved in ICT, infrastructure development and public transport in Jordan will not need to pay sales taxes and excise taxes, as the government announces a new round of tax cuts.

Over the weekend the Prime Minister of Jordan Prime Minister Abdullah Ensour announced that a number of new tax incentives will be offered to businesses in selected industries in order to boost productivity while encouraging greater levels of customer service and development.

The Prime Minister said that business activities related to the development of software, apps and games, online portals will be exempt from sales tax and customs duties.

Further, any goods or services necessary to the provision of ICT services will enjoy a zero-rating for the purposes of sales tax.

It was also announced that a number of public transport businesses will be offered the opportunity to be exempt from paying sales tax and customs duties if they can show that they have a clean driving record, and have at least 20 buses which are regarded as environmentally friendly, and were new at the time of the application for the exemption.

The Prime Minister also announced that in the near future tax breaks of up to 80 percent will be offered to businesses which engage in infrastructure development projects in the areas of the country deemed to be less developed.

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