New Investment Law

On 5 May 2013, the Jordanian government enacted the new investment law. The law implements numerous tax concessions in addition to simplifying administrative procedures to set up businesses in the country. The aim is to create a one-stop-shop for investment in the Kingdom.

The law aims to encourage local and foreign investment and repeals the 2003 Temporary Investment Law, the 1995 Investment Promotion Law and the 2008 Development Zones and Free Zones Law.

Tax concessions relating to development zones which will be available under the new regulation include:

• tax exemptions regarding the acquisition of goods, equipment and construction materials required to launch the qualifying businesses;

• profits realised by entities established within development zones will be subject to a reduced income tax rate of 5%. However banks, telecom operators, financial institutions, insurance companies and transport entities will not be able to benefit from this lower rate.

• no sales tax will be applied on goods and services purchased under the operational activities by the qualifying entities;