Inventory of Investment Incentives in...

Inventory of Investment Incentives in Jordan

A spreadsheet that takes stock of the investment incentives (Tax, Customs, and Financial) offered in

Jordan by the different Government Entities (Jordan Investment Commission, Jordan Ministry of Energy,

Aqaba Special Economic Zone Authority, Jordan Enterprise Development Corporation, and Jordan Loan

Guarantee Corporation).

September 2016

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A spreadsheet that takes stock of the investment incentives (Tax, Customs, and Financial) offered in

Jordan by the different Government Entities (Jordan Investment Commission, Jordan Ministry of Energy,

Aqaba Special Economic Zone Authority, Jordan Enterprise Development Corporation, and Jordan Loan

Full Inventory

Incentives by Institution:

JIC Incentives

Free Zones-specific Incentives

ASEZ-specific Incentives

Development Zones-specific Incentives

JLGC Incentives

JEDCO Incentives

Ministry of Energy and Mineral Resources

Incentives by Modality:

Tax Incentives

Customs Incentives

Financial Incentives

# ID Incentive NameBrief Description

(additional details, etc.)

Legal

Reference

(Y/N)

Legal

Reference

Typology

(Primary;

Secondary;

Other)

Legal Reference NameLegal Reference (Law section/

Article)

1 JIC_DZ1

Reduced Corporate Income

Tax (CIT) to 5% in

Development Zones for

economic activities

undertaken in the zones


Tax (CIT) to 5% in


economic activities


YPrimary;

secondary

Investment Law 30/2014;

Investment Incentives

Regulation 33/2015; Income

Tax Law 34/2014

Investment Law, Art. 11.A

Inventory of Investment Incentives in Jordan

A. GENERAL INFO B. LEGAL REFERENCE

2 JIC_DZ2


Tax (CIT) to 5% in

Development zones for

income generated from all

manufacturing activities

Corporate Income Tax (CIT)

reduced to 5% for the

income of the Registered

Establishment for the

economic activities in the

industrial sector inside the

Development Zones.

YPrimary;

secondary+F13




Tax Law 34/2014

Investment Law, Art. 11.B

3 JIC_DZ3


exemptions for the profits

from exports for companies

operating inside the

Development Zones





Development Zones

YPrimary;

secondary




Tax Law 34/2014

Investment Law, Art.11D

4 JIC_DZ4

General Sales Tax (GST)

exemption for goods and

services used for business

purposes in Development

Zones


exemption for the goods and

services purchased or

imported by the Registered


purpose of its economic

activity inside the

Development Area.

YPrimary;

secondary



Regulation 33/2015

Investment Law, Art. 12

5 JIC_DZ5

Reduced General Sales Tax

(GST) on specific services

offered inside the

Development Zone

The goods and services

originated in the

Development Area sold to

the rest of Jordan are subject

to 7% General Sales Tax

(GST)

YPrimary;

secondary



Regulation 33/2015

Investment Law Art. 12.E

6 JIC_DZ6

Customs duty exemption

(except on certain goods) for

goods sold inside the

Development Zones

Exemption of customs duties

for the materials, equipment,

machineries and

construction materials used

or constructing, establishing,

equipping and furnishing all

types of projects executed by

these establishments in the

development zone including

the necessary spare parts for

their continuous

maintenance, and the

imported goods for the

development zone to

practice economic activities

or the exported goods

outside the Kingdom

YPrimary;

secondaryInvestment Law 30/2014 Investment Law Art. 12. & 13

7 JEDCO1

JEDCO - Governorate

Development Fund (GDF)

subsidized loans

Governorate Development

Fund: Subsidized loans for

domestic SMEs under

construction and existing

construction projects

(contributions to the capital,

convertible bonds, in kind

shares) using non-traditional

financing tools. Investment

currently takes place using

in kind shares, whereby the

minimum funding of the

fund would be 100.00 JDs,

provided it does not exceed

80% of the total size of the

project. 10% of the annual

net profit is deducted,

provided that the total

deductions of profits does

not exceed 25% of the Fund

funding. The loan is repaid

within a period up to 8 years

including 2 years as a grace

period. The Fund aims to

invest in SMEs and big

companies whether they are

under establishment and

construction or the existing

companies that aim to start

working or expanding in

productive projects (in the

Y Other Cabinet decisionCabinet decision no. 617 dated

3/7/2012

8 JEDCO2

JEDCO - Jordan Innovation

Center Network (JICN) -

Incubators Matching Grant

Start-up can benefit from

incubators in Amman,

Jerash, Irbid, Madaba,

Karak, Tafila providing

business development /

consulting services for

Jordanian start-ups in the

targeted Governorates for

selected sectors. The

incentive mechanism is a

matching grant under the

JICN covers 80% of the

costs for up to 15,000 JOD.

The program is funded by

JEDCO and King Abdullah

II Fund for Development

(KAFD) and administered

by JICN. All projects that

have received a grant shall

be subject to income tax and

stamp duties. In the event of

buying any materials from

abroad, customs duties are

paid by the project owner.

Y PrimaryCorporation Law no. 33 for

the year 2008Article 5, paragraph C

9 MEMR1

Zero-rate General Sales Tax

(GST) for renewable energy

and energy efficiency



sources and energy

conservation systems and

equipment

YPrimary;

secondary

1) Law No. (13) Of 2012

Renewable Energy & Energy

Efficiency Law; 2) Bylaw No

13 of 2015 on the Provisions

and Conditions for

Exempting Renewable

Energy Sources and Energy

Conservation Systems and

Equipment and their

Production Inputs from

Customs Duties and

Subjecting Them to the

Generals Sales Tax of Zero.

1) Law No. (13) Of 2012


Efficiency Law: Article 11.a-b; 2)

Bylaw No 13 of 2015 on the

Provisions and Conditions for

Exempting Renewable Energy

Sources and Energy Conservation

Systems and Equipment and their

Production Inputs from Customs

Duties and Subjecting Them to the


10 MEMR2

Customs duty exemption for

renewable energy and

energy efficiency

Full exemption from

customs duties for

renewable energy sources

and energy conservation

systems and equipment

YPrimary;

secondary

1) Law No. (13) Of 2012




and Conditions for

Exempting Renewable

Energy Sources and Energy

Conservation Systems and

Equipment and their

Production Inputs from

Customs Duties and



1) Law No. (13) Of 2012


Efficiency Law: Article 11.a-b; 2)

Bylaw No 13 of 2015 on the

Provisions and Conditions for

Exempting Renewable Energy

Sources and Energy Conservation

Systems and Equipment and their

Production Inputs from Customs

Duties and Subjecting Them to the


11 JLGC1JLGC - SME Loan

guarantee

Loan guarantee for SMEs.

Maximum loan amount:

100,000 JOD. Max payment

period: 72 months.

Guarantee ratio: 70%

N

12 JLGC2JLGC - Industrial Loan

guarantee

Industrial loan guarantee:

max loan amount: 550,000

JOD. Max payment period:

96 months. Guarantee ratio:

70%

N

13 JLGC3JLGC - Capital lease

guarantee

Capital Lease guarantee.

Max loan amount: 550,000.

Max payment period: 96

months. Guarantee ratio:

70%

N

14 JLGC4JLGC - Entrepreneurship

financing

Entrepreneurship financing:




70%

N

15 JLGC5JLGC - Real estate loan

guarantee

Real estate guarantee: Max

loan amount: 75,000 JOD.



75%.

N

16 JLGC6JLGC - Land purchase loan

guarantee

Land purchase guarantee:




70%.

N

17 JLGC7JLGC - Export credit

guarantee

Export guarantee: Max

credit amount: 4 million



90%.

N

18 JLGC8JLGC - Domestic credit

guarantee

Domestic guarantee: Max




90%.

N

19 ASEZ1

Customs duty exemption in

Aqaba Special Economic

Zone (ASEZ)

Customs duty exemption on

the imports of goods for

companies established in the


Zone (ASEZ) with the

exception of cars

Y Primary ASEZA Law 32/2000

Article 30 of ASEZA Law and its

amendments no. 32 of the year

2000

20 ASEZ2


exemption in Aqaba Special

Economic Zone (ASEZ)


exemption for imports and

sales of goods and services

for companies established in

the Aqaba Special





2000

21 ASEZ3


Tax (CIT) in Aqaba Special


5% Corporate Income Tax

(CIT) on the profit of



Zone (ASEZ) (instead of the

standard rate of 20% and

14% for industry outside the

Zones)




2000

22 ASEZ4

Building tax exemption in


Zone (ASEZ)

Building tax exemption for



Zone (ASEZ)




2000

23 ASEZ5

Land tax exemption in


Zone (ASEZ)

Land tax exemption for



Zone (ASEZ)




2000

24 ASEZ6

Capital Gains Tax (CGT)




exemption for companies

established in the Aqaba

Special Economic Zone

(ASEZ)




2000

25 JIC_FZ1Customs duty exemption in

Free Zones

Full exemption from custom

duties on the goods exported

form the Free Zones to

markets other than the

Jordanian and on the goods

imported to it including

materials, equipment,

machines, supplies, and

construction materials in

connection with building,

construction, preparation

and furnishing of projects

established in the Free

Zones including spare parts

for permanent maintenance

excluding service fees.

YPrimary;

secondary



Regulation 33/2015

Investment Law Art 14.C

26 JIC_FZ2


exemption on profits in Free

Zones from certain activities

Exemption from CIT on the

profits that come from:

exportation of goods inside

the Free Zones; transit trade;

sale or waver of goods

inside the Free Zones;

provision and supplying of

services inside the Free

Zone (instead of the

standard rate of 20%)

YPrimary;

secondary




Tax Law 34/2014

Investment Law Art 14.A; Income

Tax Law: Art. 78.B

27 JIC_FZ3Exemptions from land taxes

in Free Zones

Full exemption of buildings

and constructions

established in the Free Zone

from land taxes.

YPrimary;

secondary



Regulation 33/2015

Investment Law Art 14.D

28 JIC_FZ4Exemptions from building

taxes in Free Zones


and constructions

established in the Free Zone

from building taxes.

YPrimary;

secondary



Regulation 33/2015

Investment Law Art 14.D

29 JIC_FZ5

Exemption from General

Sales Tax (GST) for services

offered in the Free Zones


Sales Tax (GST) on services

offered inside the Free

Zones

YPrimary;

secondary



Regulation 33/2015; Sales

Tax Law 29/2009

Investment Law Art. 12.D; Sales

tax Law: Art. 22

30 JIC_FZ6


Sales Tax (GST) on goods

consumed in the Free Zones

for business purposes



consumed in the Free Zone


YPrimary;

secondary




Tax Law 29/2009


Tax Law: Art. 22

31 JIC1


production inputs for the

industrial and handicraft

sectors

Customs duty exemptions on



sectors for the activities

listed under Tables 1/A and

1/B of the Incentives

Regulation

YPrimary;

secondary



Regulation 33/2015

Investment Law: Art. 4 Para. B;

Incentives Regulation: Tables 1/A

and 1/B

32 JIC2


production requirements and

fixed assets for industrial or

crafts activities outside the

Free Zones and the

Development Zones

Customs duty exemptions

for the industrial and crafts

activities listed under Table

no. 1/C of the Incentives

Regulation

YPrimary;

secondary



Regulation 33/2015

Investment Law, Art. 4 Para. B;

Incentives Regulation: Table 1/C

33 JIC3



the dual-use fixed assets

necessary for practice of

industrial or handicraft

activities outside the Free

Zones and the Development

Zones


fixed assets for industrial

and handicraft activities

listed in Table 1/D of the

Incentives Regulation.

YPrimary;

secondary



Regulation 33/2015


Incentives Regulation: Table 1/D

34 JIC4


the goods required for

certain sectors outside the

Free Zones and the

Development Zones


the goods required for the

sectors in Table 3

YPrimary;

secondary



Regulation 33/2015


Incentives Regulation: Table 3

35 JIC5


exemption on production

inputs for manufacturing

and vocational activities

outside the Free Zones and

Development Zones



inputs for manufacturing


listed in Tables 1/B, 1/C,

and 1/D of the incentives

regulation.

YPrimary;

secondary



Regulation 33/2015


Incentives Regulation: Tables 1/B,

1/C and 1/D

36 JIC6


exemption on services

necessary for manufacturing



Development Zones


exemption on services for

manufacturing and

vocational activities listed in

Table 2 of the Incentives

Regulation

YPrimary;

secondary



Regulation 33/2015



37 JIC7


exemption on the goods

required for certain

economic activities outside

the Free Zones and

Development Zones


exemption on the services


and the said vocational

activities stated in the

incentives regulations as per


Regulation

YPrimary;

secondary



Regulation 33/2015



38 JIC8


reduction for 10 years for


least developed regions


reduction of 50% for 10

years for economic activities

established in lest developed

regions (instead of the



Zones)

YPrimary;

secondary


Income Tax Reduction

Regulation in the least

developed regions 44/2016

Investment Law, Art. 5.A and B;

Article 5A of the income tax

reduction regulation in the least

developed regions

39 JIC9




Free Zones and the

Development Zones



sectors in Table 3 of the

Incentives Regulation

YPrimary;

secondary



Regulation 33/2015



40 TAX1Loss carry forward for up to

5 years

Losses approved by the Tax

Authority can be carry

forward for up to 5 years.

Carry back of losses is not

permitted

Y Primary Income Tax Law 34/2014

41 TAX2


Tax (CIT) rate to 14% for

companies in the industrial

sector outside of the Free

Zones and Development

Zones






Zones (instead of the



42 TAX3

Exemption from Corporate

Income Tax (CIT) for capital

gains for all economic

activities

Income derived from capital

gains is generally exempted

from taxation, except for

capital gains on assets

subject to depreciation,

intangible assets (e.g.

goodwill) and capital gains

recognized by banks,

primary telecommunication

companies, mining

companies, financial

institutions, financial

brokerage companies,

insurance and reinsurance

companies, and juristic

persons conducting financial

lease activities.


43 JIC_ICT1


the import of goods by firms

in the ICT sector

Exemption from Customs

Duties for the import of

goods stated in Table 2 of

the Decision of JIC

Investment Council no.

1/1/2016 dated 25/1/2016 by

firms in the ICT sector

YPrimary;

secondary


Decision of JIC Investment

Council no. 1/1/2016 dated

25/1/2016

Investment Law/article 8A,



25/1/2016: Tables 1-2

44 JIC_ICT2


Sales Tax (GST) for

imported or locally

purchased goods by firms in

the ICT sector


Sales Tax (GST) for

imported or locally


the ICT sector, for the goods

stated in Table 2 of the

Decision of JIC no. 1/1/2016

dated 25/1/2016

YPrimary;

secondary




25/1/2016


Decision of JIC no 1/1/2016 dated

25/1/2016: Tables 1-2

45 JIC_ICT3



offered by firms in the ICT

sector




sector. Exemption of the

services stated in Table 3 of

the decision of JIC no.

1/1/2016 dated 25/1/2016

YPrimary;

secondary




25/1/2016



25/1/2016: Tables 1 and 3

46 JIC_ICT4


reduction to 5% for firms in

the ICT sector



the ICT sector (instead of

the standard rate of 20%)

YPrimary;

secondary




25/1/2016



25/1/2016: Tables 1-2

47 JIC_ICT5


(GST) for services provided

by firms in the ICT sector



by firms in the ICT sector,

listed in Table 3 attached to


1/1/2016 dated 25/1/2016

YPrimary;

secondary




25/1/2016



25/1/2016: Tables 1 and 3

Category (Tax

/Customs/Fina

ncial)

Applicable

Tax/DutyModality of Incentive

Economy

Wide/Sector-

Specific

SectorNational /

Subnational

Available for

Foreign Investors

(Y/N)

Free Zone-specific/Development

Zone-Specific/ASEZ-

Specific/Outside Zones/Inside

and Outside the Zones

Tax CIT Reduced Tax Rate Sector-specific

Any industrial,

agricultural, touristic,

commercial, crafts, or

service activity registered

in the development zone

in addition to IT. The

specific sector depends

on the designation of the

specific Development

Zone. 1) Maan: Light,

Medium and Heavy

Industries; Ceramics;

Plastics; Electrical

Appliances; Renewable

Energy. 2) Jabal Ajloun

and the Dead Sea:

Tourism, Hospitality and

Eco-Tourism. 3) King

Subnational Y Development Zone-specific

C. INCENTIVE DESIGN


Any industrial,










Medium and Heavy





and the Dead Sea:




Tax CIT Tax exemption Sector-specific

All sectors registered in

the Development Zones,

including he following

sectors: industry,

agriculture, tourism,

media, crafts, and

services including IT


Tax GST Tax exemption Sector-specific

Any industrial,










Medium and Heavy





and the Dead Sea:



Hussein Business Park:

Technology and

Business. 4) Mafraq:

Light and Medium

Manufacturing;

Logistics. 5) Irbid: IT,

BPO and Healthcare.


Tax GST Reduced Tax Rate Sector-specific

Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.


Customs Customs duty Customs duty exemption Sector-specific

Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.


Financial Subsidized loan Sector-specificIndustry, services,

agricultural industrySubnational Y Inside and Outside the Zones

Financial Matching grant Sector-specificFood industries; creative

industries; light industry; Subnational N Inside and Outside the Zones

Tax GST Zero-rate tax Sector-specificRenewable Energy;

Energy EfficiencyNational Y Inside and Outside the Zones

Customs Customs duty Customs duty exemption Sector-specificRenewable Energy;

Energy EfficiencyNational Y Inside and Outside the Zones

Financial Loan guarantee Economywide National Y Inside and Outside the Zones

Financial Loan guarantee Sector-specific Industry and Handicraft National Y Inside and Outside the Zones



Financial Loan guarantee Sector-specific Real estate National Y Inside and Outside the Zones




Customs Customs duty Customs Duty Exemption Sector-specific

Logistics, warehouses,

transportation and

tourism.

Subnational Y ASEZ-specific



transportation and

tourism.



All sectors except for:

banks and financial

institutions, insurance

companies and

reinsurance companies;

and road transport

companies.


Tax Building tax Tax exemption Sector-specific


transportation and

tourism.


Tax Land tax Tax exemption Sector-specific


transportation and

tourism.


Tax CGT Tax exemption Sector-specific


transportation and

tourism.

Automatic Y ASEZ-specific


Depends on the sector

designated for the

specific Free Zone.

Subnational Y Free Zone-specific

Tax CIT Tax exemption Sector-specific


designated for the

specific Free Zone.


Tax Land Tax Tax exemption Sector-specific


designated for the

specific Free Zone.


Tax Building Tax Tax exemption Sector-specific


designated for the

specific Free Zone.


Tax GST Tax exemption Sector-specificFor services offered in

the Free Zones.Subnational Y Free Zone-specific


For goods consumed

inside the Free Zones for

business purposes


Customs Customs duty Customs duty exemption Sector-specific Industry and Handicraft National Y Outside the Zones




Agriculture and

livestock; hospitals and

comprehensive medical

centers; hotels and

tourist facilities;

entertainment and tourist

recreation centers;;

communication centers;

scientific research

centers and scientific

labs; artistic media

production; conference

and exhibition centers;

transport and/or

distribution and/or

extraction water, gas and

oil derivatives using

pipelines; air transport,

sea transport, and

railways.

National Y Outside the Zones



banks,

telecommunications

companies that have

individual licenses,

financial brokerage

companies, and financial

companies including the

companies that practice

exchange, financing and

financial leasing

business, and

consultation & financial

and tax audit companies,

transport companies (air

transport, sea transport,

railways, and road

freight transport),

insurance and

reinsurance companies,

basic mining and

extraction industries,

generation and

distribution of elasticity,

and transport and/or

distribution and/or

extraction of water, gas,

and oil derivatives using

the pipelines.




banks,

telecommunications

companies that have


financial brokerage





financial leasing

business, and





railways, and road

freight transport),

insurance and


basic mining and


generation and



distribution and/or



the pipelines.



Agriculture, cattle,

hospitals and


centers, hotels, and

tourist utilities,

communications centers,

scientific research

centers, labs, media

production, conferences

and exhibitions centers,



railways, and road

freight transport), basic

mining and extraction

industries, distribution ,


distribution and/or



the pipelines.


Tax CIT Reduced Tax Rate Economywide Subnational Y Outside the Zones


Agriculture and



centers; hotels and

tourist facilities;

entertainment and tourist

recreation centers;;

communication centers;

scientific research

centers and scientific

labs; artistic media

production; conference

and exhibition centers;

transport and/or

distribution and/or




sea transport, and

railways.


Tax CIT Loss carry forward Economywide National Y Inside and Outside the Zones

Tax CIT Reduced Tax Rate Sector-specific Industry and Handicraft National Y Outside the Zones

Tax CIT Tax exemption Economywide





goodwill) and capital

gains recognized by

banks, primary

telecommunication

companies, mining




insurance and


and juristic persons

conducting financial

lease activities.

National Y Inside and Outside the Zones

Customs Customs duty Customs duty exemption Sector-specific ICT National Y Inside and Outside the Zones

Tax GST Tax exemption Sector-specific ICT National Y Inside and Outside the Zones

Tax GST Tax exemption Sector-specific ICT National Y Inside and Outside the Zones

Tax CIT Reduced Tax Rate Sector-specific ICT National Y Inside and Outside the Zones

Tax GST Zero-rate tax Sector-specific ICT national Y Inside and Outside the Zones

Info on the Incentive

Available Online (Y/N)Website (Name)

Website (Web

link)

Incentive

Information

Available in

English (Y/N)

Legal Base

Available in

English (Y/N)

Discretion (automatic;

decision based on public

and objectively verifiable

criteria; discretional)

Discretion (additional

details)

Eligibility Criteria

Specified (Y/N)

Y JIC www.jic.gov.jo N N Automatic

Automatic - By simply

registering at JIC and

obtaining a certificate of

registration, the investor is

given a tax number and a

purchase mechanism and

obtains incentives

automatically

Y

E. INCENTIVE AWARDINGD. INFO on TRANSPARENCY

http://www.jic.gov.jo/








obtains incentives

automatically

Y


The JIC Technical Committee

on Incentives checks the

compliance of the investor

with the eligibility criteria and

decides the volumes of the


fixed assets and activities to

apply the exemption on.

Y










obtains incentives

automatically

Y









obtains incentives

automatically

Y



Automatic - The investor

applies the incentive

automatically upon satisfying

the specified eligibility

criteria without further

approvals. However, the

investor is still required to

obtain from the customs

representative at the JIC a

hard copy exemption letter

signed. The document is then

showed to the customs

authority at the port in order

to apply the exemption.

Y


Y JEDCO www.jedco.gov.jo Y

Decision based on public


criteria

Projects are assessed and

studied in different phases

(internal and sub-committees)

, and the funding decision is

taken by the Executive

Committee of Governorates

Development Fund emanating

from JEDCO

Y

http://www.jedco.gov.jo/

YJEDCO; Business

Innovation Center

www.jedco.gov.jo

and www.bic.joY Y



criteria

The Technical Committee on

Incentives checks the

compliance with the eligibility

criteria and decides whether

the company can benefit from

the program.

Y

http://www.jedco.org.jo/


Y

Ministry of

Energy and

Mineral

Resources

(MEMR)

www.memr.gov.jo N N



criteria

The decision is based on the

formation of a technical

ministerial committee for

exemptions. The committee

shall look into the exemptions

application for the renewable

energy sources and its devices

and equipment and exempting

them from duties and subject

them to GST for a certain rate

or zero rate, in accordance

with the provisions of the

regulation and submitting the

suitable recommendation to

the minister to ratify the

decision

Y

http://www.memr.gov.jo/

Y

Ministry of

Energy and

Mineral

Resources

(MEMR)

www.memr.gov.jo N N



criteria
















decision

Y


Y

Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y Discretional

Credit study and evaluation of

the application are conducted,

in addition to ensuring that

the purpose of the loan is

meeting the loan guarantee

criteria. When clients submit a

loan guarantee application, it

will be financially analyzed,

then an approved written

letter is provided to the client.

Y

Y

Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y Discretional Case by case Y

Y

Jordan Loan

Guarantee

Corporation

(JLGC)


http://www.jlgc.com/



Y

Jordan Loan

Guarantee

Corporation

(JLGC)












Y

Y

Jordan Loan

Guarantee

Corporation

(JLGC)












Y

Y

Jordan Loan

Guarantee

Corporation

(JLGC)









Y




Y

Jordan Loan

Guarantee

Corporation

(JLGC)


1. Providing the names and

requested credit limits for two

buyers.

2. Receiving the approved

credit limits

3. Filling the annex with the

expected turnovers by the

Potential policy holder

4. Providing a Price Offer,

and receiving the acceptance

by the Potential policy holder

5. Preparing and signing the

policy between the two parties

Y

Y

Jordan Loan

Guarantee

Corporation

(JLGC)


N N N Automatic Y



N N N Automatic Automatic Y





Y JIC www.jic.gov.jo Y N Automatic















Y



Automatic - The investor fills

in an electronic form on the

web-portal of the Income and

Sales Tax Department and

obtains a receipt of the

incentive awarding without

further approvals. The

investor is refunded the tax

amount from the Income &

Sales Tax Department within

30 days

Y












30 days

Y














30 days

Y












30 days

Y














30 days

Y

















Y

















Y


Y JIC www.jic.gov.jo Y N



criteria









Y


N JIC www.jic.gov.jo Y N



criteria






services and activities to


Y


Y JIC www.jic.gov.jo Y N



criteria

Automatic with the exception

of the Articles stated in Table

D as they need a committee

Y













30 days

Y













30 days

Y


Y JIC www.jic.gov.jo N N



criteria


on Incentives shall look into

any application for the

reduction of the income tax

payable for the activity and

shall issue its decision within

a period not exceeding 30

working days as of the

submission of the application

Y


N JIC www.jic.gov.jo Y N



criteria






services and activities to


Y

Automatic Automatic

Automatic Automatic


Automatic Automatic

Y JIC www.jic.gov.jo N N Discretional

Based on the decision of the

Technical Committee on

Incentives.

Y




JIC Technical Committee on

Incentives.

Y




Incentives.

Y




Incentives.

Y




Incentives.

Y





Eligibility Criteria (description)


Available

Publically (Y/N)


Available in

English (Y/N)

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)

Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)

Investments in Development Areas except

for: Except for: banks, telecommunications

companies that have individual licenses,

financial brokerage companies, and

financial companies including the

companies that practice exchange, financing

and financial leasing business, and

consultation & financial and tax audit

companies, transport companies (air

transport, sea transport, railways, and road

freight transport), insurance and

reinsurance companies, basic mining and

extraction industries, generation and

distribution of elasticity, and transport

and/or distribution and/or extraction of

water, gas, and oil derivatives using the

pipelines.

Y N N

JIC and Income and

Sales Tax

Department

Online

E. INCENTIVE AWARDING F. INCENTIVE ADMINISTRATION

The industrial sector in the development

zonesY N N

JIC and Income and

Sales Tax

Department

Online

Exports of goods for economic activities

inside the Development ZonesY N N

JIC and Income and

Sales Tax

Department

Online

Goods and services purchased or imported

by the Registered Establishment for the

purpose of its economic activity inside the

Development Area.

Y N N

JIC and Income and

Sales Tax

Department

Online

GST is collected for a rate of 7% of the

services sales value after selling them for

consumption inside the development zones

Y N N

JIC and Income and

Sales Tax

Department

Online

Goods offered by registered investors

except the sales of goods subject to the

special sales tax including vehicles,

tobacco, alcohol and beer are subject to the

GST and custom duties collected in Jordan

when sold for consumption in the

Development Area. The goods consumed in

the development areas are subject to the

GST and customs duties unless consumed

for the purpose of the practice of the

economic activity of the Registered

Establishment.

Y N N JIC and Customs

AuthorityPaper

The contribution of the project owner

should not be less than 10% of the project,

provided the remaining funding is made

available. The Jordanian labor should not

be less than 60%. The project owner should

highlight the economic impact of the

project through the added value it

represents in terms of providing new work

opportunities and migrant workers

substitution, and cross-cutting with

different sectors and providing export

opportunities

Y Y Ywww.jedco.g

ov.joJEDCO Paper 3-9 months



Anybody of Jordanian nationality that

mature, adult (above 18), has an idea of an

achievable project economically feasibile.

Enrolment in a training course entitled

"establish your own business".

Implementation of the project in any

governorate except for the Capital and

Zarka. The project should be productive or

service oriented.

Y N Y

www.jedco.g

ov.jo and

www.bic.jo

Jordan Innovation

Centers Network

(JICN)/Business

Incubators

Paper

The technical

committee for

incentives

checks the

compliance with

the eligibility

criteria and

decides if the

company can

benefit from the

program




1) Renewable energy sources and energy

conservation systems and equipment

included in Table 1 of Bylaw No 13 of

2015, and 2) for the inputs from the

regulation no 13 for the year 2015

"Exemption provisions and conditions for

renewable energy sources and energy

conservation systems exempting renewable

energy sources systems and equipment and

energy conservation systems and equipment

from customs duties and subjecting them to

the general sales tax at a rate of zero

Y N Ywww.me.mr.

gov.jo

Committee on

exemption from

customs duties and

subjecting to the

general sales tax at a

rate of zero

Paper

Within 30 days

of submission of

the complete

application

according to

Article 5 of the

regulation

http://www.me.mr.gov.jo/





2015, and 2) Locally produced and

imported products that are considered

production and manufacturing inputs for


conservation systems and equipment in

Table 2 of Bylaw No 13 of 2015. From

Bylaw No 13 of 2015 Article 9 A-B: "The

following conditions shall apply for

exempting renewable energy sources

systems and equipment and energy

conservation systems and equipment from

customs duties and subjecting them to the

general sales tax at a rate of zero: 1. They

shall be new and unused.

2. They shall have the highest energy

efficiency classification according to an

attached sticker label issued by the Jordan

Standards and Metrology Organization

(JSMO) or any reference organization that

it accredits.

3. They shall realize savings not less than

20% of the normal consumption rate of

equivalent traditional non-energy saving

systems and equipment according to a

certificate issued by a local or foreign

specialized testing laboratory that is

accredited by the Jordan Standards and

Metrology Organization (JSMO). B. The

Y N Ywww.me.mr.

gov.jo

Committee on

exemption from

customs duties and

subjecting to the


rate of zero

Paper

Within 30 days

of submission of

the complete

application

according to

Article 5 of the

regulation



Life Insurance on the of the borrower/

client; Insurance on the project assetsN Y N

JLGC credit

committeePaper

Maximum two

working days

N Y N JLGC credit

committeePaper

Maximum three

working days

N Y N JLGC credit

committeePaper

Maximum three

working days


Life Insurance of the borrower/ client;

Insurance on the project assetsN Y N

JLGC credit

committeePaper

Maximum two

working days

Life Insurance of the borrowed N Y N JLGC credit

committeePaper

Maximum two

working days

Life Insurance of the borrowed N Y N JLGC credit

committeePaper

Maximum two

working days




• In order to sign a policy it should contain

at least two buyers.

• The Maximum credit limit is 4,000,000$,

with exceptional cases.

• Covering Political and commercial risks.

Y Y Y

http://www.jl

gc.com/en/pa

ge/services-

and-programs

PaperMaximum 15

working days





• Covering commercial risk.

Y Y Y

http://www.jl

gc.com/en/pa

ge/services-

and-programs

PaperMaximum 15

working days

Granted to companies registered in ASEZ Y N N ASEZA Paper 7

http://www.jlgc.com/en/page/services-and-programs




http://www.aqabazone.com/en/










Goods exported form the Free Zones to

markets other than the Jordanian and on the

goods imported to it including materials,

equipment, machines, supplies, and

construction materials in connection with

building, construction, preparation and

furnishing of projects established in the

Free Zones including spare parts for

permanent maintenance excluding service

fees.

Y N N JIC and Customs

AuthorityPaper


Profits that come from: exportation of

goods inside the Free Zones; transit trade;

sale or waver of goods inside the Free

Zones; provision and supplying of services

inside the Free Zone.

Y N N

JIC and Income and

Sales Tax

Department

Online

Buildings and constructions established in

the Free Zone by registered investors.Y N N

JIC and Income and

Sales Tax

Department

Online



JIC and Income and

Sales Tax

Department

Online

Services offered inside the Free Zones by

registered investors.Y N N

JIC and Income and

Sales Tax

Department

Online

Profits that come from: exportation of

goods inside the Free Zones; transit trade;

sale or waver of goods inside the Free

Zones; provision and supplying of services

inside the Free Zone.

Y N N

JIC and Income and

Sales Tax

Department

Online

Production inputs eligible for the incentive

are included in Tables 1/A and 1/B of the


Y N N JIC Paper

Production requirements and fixed assets

for industrial and crafts activities included

in Table 1/C of the Incentives Regulation

Y N N JIC Paper

Production requirements and fixed assets

for industrial and crafts activities included

in Table 1/D of the Incentives Regulation

Y N N JIC Paper

Goods needed to practice the activities

included in Table 3 of the Incentives

Regulation

Y N N JIC Paper

Production inputs and fixed assets of the

manufacturing activities and crafts activities

stated in Tables 1/B, 1/C, and 1/D of the

Incentives Regulation provided it is

registered in GST

Y N N

JIC and Income and

Sales Tax

Department

Online

Sectors included in Table 2 of the

Incentives RegulationY N N

JIC and Income and

Sales Tax

Department

Online

Services and activities included in Table 3

of the Incentives RegulationY N N

JIC and Income and

Sales Tax

Department

Online

Investments in regions from Investment

Law, Art. 5., Category A of the income tax

reduction regulation in the least developed

regions, based on the categorization of the

region (a,b,c,d)

Y N N

JIC and Income and

Sales Tax

Department

Online



Regulation

Y N N JIC Paper

Income and Sales

Tax Department

Income and Sales

Tax Department

Income and Sales

Tax Department

Activities and services of the ICT sector

stated in Table 1 of the decision of JIC no

1/1/2016 dated 25/1/2016

Y N N JIC Online



1/1/2016 dated 25/1/2016

Y N N JIC Online



1/1/2016 dated 25/1/2016

Y N N JIC Online



1/1/2016 dated 25/1/2016

Y N N JIC Online



1/1/2016 dated 25/1/2016

Y N N JIC Online

Average Length of Awarding

Process (additional details)

Monitoring

Mechanism

(Y/N)

Monitoring

Authority (Name)

Monitoring (additional

details)

Implementing

Authority (Name)

Appeal

Procedure

(Y/N)

Appeal Procedure (description)

Immediately after registration at

JIC and obtaining a tax numberY

JIC; Income and

Sales Tax

Authority

On-site visits: Inspection

committees to inspect the

basic and intermediate inputs.

Written reports: detailed

reports documenting activities

and incentives.

JIC and Income

and Sales Tax

Department

Y

The investor can appeal to the Head of

the Investment Commission within 60

days from receiving written decision of

rejection. In case the objection has not

been settled within 15 days, the Head

of the Investment Commission should

refer the objection to the Governmental

Committee formed by the Cabinet to

examine the objections. The

Governmental Committee shall issue a

decision within 30 days of referral of

the objections. The decision of the

Committee may be appealable before

the Supreme Court of Justice. (Source:

Investment Law, Art 18 D-F)

F. INCENTIVE ADMINISTRATION

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y


















JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

















JIC and obtaining the tax numberY

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y


















JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y
















1) The investor files the signed

hard-copy application at JIC in 1

day through the Customs

Authority representative at JIC.

2) The investor applies the

customs exemption by showing

the signed authorization at the

port.

YJIC; Customs

Authority






and incentives.

JIC and Customs

Authority
















Depends on the readiness of the

project in terms of obtaining the

approvals and licenses and the

availability of experiences to

commence the project works in

the event of obtaining the

approvals and licenses

Y JEDCO

Periodical reports are

submitted to the Royal Court

and the Presidency of the

Fund about the performance

of the Fund

JEDCO

1) Companies submit the paper-

format application by email or in-

person. 2) A Technical

Committee reviews the

application and decides on the

awarding.

Jordan Innovation

Centers Network

(JICN)

Y

The applicant can request information

about the assessment process and its

results and re-apply again

According to Article 5 B of the

regulationY

General Customs

Department, GST

Department

Ministry of Energy

and Mineral

Wealth in

cooperation and

coordination with

the concerned

entities

Y

Article 5 of the Regulation: The

Minister's decision shall be subject to

appeal to the Administrative Court

within 30 days of its notification


regulationY

General Customs

Department, GST

Department

Ministry of Energy

and Mineral

Wealth in

cooperation and

coordination with

the concerned

entities

Y





Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

N

Decision reconsideration depends on

the additional information sent from

the bank.

Y

* risk management

consultants:

guaranteed amount

50 thousand Dinar

or higher….

*internal auditor:

randomly selected

loan applications

JLGC credit

committee Y By email with further clarification

Y

*risk management

consultants:

guaranteed amount

of 50 thousand JD

or above

*internal auditor:

randomly selected

loan application

JLGC credit

committee Y By email with further clarification

Y

Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

y



the bank.

Y

Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

y



the bank.

Y

Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

y



the bank.

Y

The internal

auditor takes

samples at the end

of each month.

JLGC credit

committee Y

In case of credit limit rejection, we can

reconsider our decision if the potential

policy holder provide us with

additional financial information about

the buyer.

Y

The internal

auditor takes

samples at the end

of each month.

JLGC credit

committee Y





the buyer.

Upon granting the registration

certificates and final approvalsY ASEZA ASEZA














Authority representative at JIC.

2) The investor applies the

customs exemption by showing

the signed authorization at the

port.

YJIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY








Committee formed by the Investment

Window Regulation no. 32 for the year

2015 to examine the objections. The







1) The investor fills in an

electronic form on the web-portal

of the Income and Sales Tax

Department and obtains a receipt

of the incentive awarding without

further approvals. 2) The investor

is refunded the tax amount from

the Income & Sales Tax

Department within 30 days.

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

























Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

























Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

























Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

























Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y
















Direct implementation takes

place once the needed documents

are presented (exemption letter,

manufacturing formula).

YJIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY









Window Regulations no. 32 to






the Supreme Court of Justice. This is

addition to the Investor's right to resort

to the administrative judiciary to object

to the rejection decision (Source:


Direct implementation takes

place once the needed documents

are presented (exemption letter,


YJIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY









Window Regulations no 32 for the

year 2015 to examine the objections.

The Governmental Committee shall

issue a decision within 30 days of

referral of the objections. The decision

of the Committee may be appealable

before the Supreme Court of Justice.

(Source: Investment Law, Art 18 D-F)

1) The investor can file the

signed hard-copy application at

JIC in 1 day through the Customs

Authority representative at the

JIC or by email. 2) The Technical

Committee on Incentives checks

the compliance with the

eligibility criteria and decide the

volumes of the fixed assets and

activities to apply the exemption

on. 3) The investor receives the

exemption letter and applies the

incentive showing the custom

exemption authorization at the

port.

YJIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY



























on. 3) The investor receives

notification and applies the



port.

YJIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY










2015 , to examine the objections. The







Regarding the articles stated in

table D: 1) The investor fills in

an electronic form on the web-

portal of the Income and Sales

Tax Department and obtains a

receipt of the incentive awarding

without further approvals. 2) The


amount from the Income & Sales

Tax Department within 30 days.

Y

JIC; Income and

Sales Tax

Authority and

Customs

Department






and incentives.

JIC and Income

and Sales Tax

Department and

Customs

Department

Y

























Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

























Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

























Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y


























on. 3) The investor receives

notification and applies the



port.

YJIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY

















Income and Sales

Tax Department

Income and Sales

Tax Department

Income and Sales

Tax Department

Y

JIC and the

Customs

Department






and incentives.

JIC and the

Customs

Department

Y









Window Regulation No. 32 for the

Y

JIC and the

Income Tax and

Sales Tax

Department






and incentives.

JIC and the

Income Tax and

Sales Tax

Department

Y












Y

JIC and the

Income Tax and

Sales Tax

Department






and incentives.

JIC and the

Income Tax and

Sales Tax

Department

Y








Y

JIC and the

Income Tax and

Sales Tax

Department






and incentives.

JIC and the

Income Tax and

Sales Tax

Department

Y










Y

JIC and the

Income Tax and

Sales Tax

Department






and incentives.

JIC and the

Income Tax and

Sales Tax

Department

Y












issue a decision within 30 days of

Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

Awarded Firms in

Calendar Year X

(number)

Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally


Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

55 million JOD until the

end of 2016 and

indicative 20 million till

the end of 2018

59 million JOD

Approval to finance 93

projects and to sign

agreements for 57 projects

Yes-internally

112 have benefited

between 2010 and 2015Yes-internally

Yes-internally

Yes-internally

# of loan=475

The face

value=16119629 JD

# of loan=475

The face

value=16119629 JD

707 Yes-internally

2015: 17,818,308 JD 2015:13,259,909 JD 71 Yes-internally

2015:6,091,520 JD 2015: 4,213,913 JD 3 Yes-internally

Included in the SME

(above)

Included in the SME

(above)

Included in the SME

(above)Yes-internally

# of loan=32

The face value=2017222

JD

# of loan=32

The face

value=2017222 JD

62 Yes-internally

0 0 0 Yes-internally

50,000,000 JDs 45,275,209.237 JDs 729 Yes-internally

10,000,000 JDs 5,878,942.182 JDs 291 Yes-internally

3788 Yes-internally

3788 Yes-internally

3788 Yes-internally

3788 Yes-internally

3788 Yes-internally

3788 Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally



Legal

Reference

(Y/N)

Legal

Reference

Typology

(Primary;

Secondary;

Other)

1 JIC_DZ1


Tax (CIT) to 5% in


economic activities



Tax (CIT) to 5% in


economic activities


YPrimary;

secondary

2 JIC_DZ2


Tax (CIT) to 5% in










Development Zones.

YPrimary;

secondary

Inventory of Investment Incentives Under the Jordan Investment Commission (JIC)


3 JIC_DZ3





Development Zones





Development Zones

YPrimary;

secondary

4 JIC_DZ4





Zones







activity inside the

Development Area.

YPrimary;

secondary

5 JIC_DZ5



offered inside the

Development Zone


originated in the




(GST)

YPrimary;

secondary

6 JIC_DZ6




Development Zones



machineries and construction

materials used or

constructing, establishing,






their continuous



development zone to practice

economic activities or the

exported goods outside the

Kingdom

YPrimary;

secondary

7 JIC_FZ1Exemptions from customs

duties in Free Zones











construction, preparation and

furnishing of projects

established in the Free Zones

including spare parts for

permanent maintenance


YPrimary;

secondary

8 JIC_FZ2








sale or waver of goods inside

the Free Zones; provision

and supplying of services

inside the Free Zone (instead

of the standard rate of 20%)

YPrimary;

secondary


in Free Zones


and constructions established

in the Free Zone from land

taxes.

YPrimary;

secondary


taxes in Free Zones



in the Free Zone from

building taxes.

YPrimary;

secondary

11 JIC_FZ5






offered inside the Free Zones

YPrimary;

secondary

12 JIC_FZ6









YPrimary;

secondary

13 JIC1




sectors







Regulation

YPrimary;

secondary

14 JIC2





Free Zones and the

Development Zones

Customs duty exemptions for

the industrial and crafts



Regulation

YPrimary;

secondary

15 JIC3








Zones


fixed assets for industrial and

handicraft activities listed in

Table 1/D of the Incentives

Regulation.

YPrimary;

secondary

16 JIC4




Free Zones and the

Development Zones



sectors in Table 3

YPrimary;

secondary

17 JIC5



inputs for manufacturing and

vocational activities outside

the Free Zones and

Development Zones



inputs for manufacturing and


Tables 1/B, 1/C, and 1/D of

the incentives regulation.

YPrimary;

secondary

18 JIC6






Development Zones



manufacturing and



Regulation

YPrimary;

secondary

19 JIC7





the Free Zones and

Development Zones








Regulation

YPrimary;

secondary

20 JIC8


reduction for 10 years for


least developed regions


reduction of 50% for 10

years for economic activities

established in lest developed

regions (instead of the



Zones)

YPrimary;

secondary

21 JIC9




Free Zones and the

Development Zones





YPrimary;

secondary

22 JIC_ICT1



goods by firms in the ICT

sector




the Decision of JIC


1/1/2016 dated 25/1/2016 by


YPrimary;

secondary

23 JIC_ICT2


Sales Tax (GST) for

imported or locally


the ICT sector


Sales Tax (GST) for

imported or locally


the ICT sector, for the goods

stated in Table 2 of the

Decision of JIC no. 1/1/2016

dated 25/1/2016

YPrimary;

secondary

24 JIC_ICT3




sector




sector. Exemption of the

services stated in Table 3 of


1/1/2016 dated 25/1/2016

YPrimary;

secondary

25 JIC_ICT4



the ICT sector



the ICT sector (instead of the


YPrimary;

secondary

26 JIC_ICT5



by firms in the ICT sector



by firms in the ICT sector,

listed in Table 3 attached to


1/1/2016 dated 25/1/2016

YPrimary;

secondary

27

28

29

30

31

32

33

34

35

36


Article)

Category (Tax

/Customs/Finan

cial)

Applicable

Tax/Duty




Tax Law 34/2014

Investment Law, Art. 11.A Tax CIT




Tax Law 34/2014

Investment Law, Art. 11.B Tax CIT

B. LEGAL REFERENCE C. INCENTIVE DESIGN




Tax Law 34/2014

Investment Law, Art.11D Tax CIT



Regulation 33/2015

Investment Law, Art. 12 Tax GST



Regulation 33/2015

Investment Law Art. 12.E Tax GST

Investment Law 30/2014 Investment Law Art. 12. & 13 Customs Customs duty

Investment Law 30/ 2014;


33/2015

Investment Law Art 14.C Customs Customs duty




Tax Law 34/2014


Tax Law: Art. 78.BTax CIT



33/2015

Investment Law Art 14.D Tax Land Tax



33/2015

Investment Law Art 14.D Tax Building Tax




Tax Law 29/2009


tax Law: Art. 22 Tax GST




Tax Law 29/2009


Tax Law: Art. 22 Tax GST



Regulation 33/2015


Incentives Regulation: Tables 1/A

and 1/B

Customs Customs duty



Regulation 33/2015


Incentives Regulation: Table 1/CCustoms Customs duty



Regulation 33/2015


Incentives Regulation: Table 1/DCustoms Customs duty



Regulation 33/2015


Incentives Regulation: Table 3Customs Customs duty



Regulation 33/2015


Incentives Regulation: Tables 1/B,

1/C and 1/D

Tax GST



Regulation 33/2015


Incentives Regulation: Table 2Tax GST



Regulation 33/2015




Income Tax Reduction

Regulation in the least

developed regions 44/2016

Investment Law, Art. 5.A and B;

Article 5A of the income tax

reduction regulation in the least

developed regions

Tax CIT



Regulation 33/2015


Incentives Regulation: Table 3Customs Customs duty




25/1/2016




25/1/2016: Tables 1-2





25/1/2016



25/1/2016: Tables 1-2

Tax GST




25/1/2016



25/1/2016: Tables 1 and 3

Tax GST




25/1/2016



25/1/2016: Tables 1-2

Tax CIT




25/1/2016



25/1/2016: Tables 1 and 3

Tax GST

Modality of Incentive

Economy

Wide/Sector-

Specific

SectorNational /

Subnational

Available for

Foreign Investors

(Y/N)

Reduced Tax Rate Sector-specific

Any industrial,










Medium and Heavy





and the Dead Sea:



Subnational Y


Any industrial,










Medium and Heavy





and the Dead Sea:



Subnational Y

C. INCENTIVE DESIGN

Tax exemption Sector-specific




sectors: industry,


media, crafts, and


Subnational Y


Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.

Subnational Y


Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.

Subnational Y

Customs duty exemption Sector-specific

Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.

Subnational Y



designated for the

specific Free Zone.

Subnational Y



designated for the

specific Free Zone.

Subnational Y



designated for the

specific Free Zone.

Subnational Y



designated for the

specific Free Zone.

Subnational Y

Tax exemption Sector-specificFor services offered in

the Free Zones.Subnational Y


For goods consumed


business purposes

Subnational Y

Customs duty exemption Sector-specific Industry and Handicraft National Y




Agriculture and



centers; hotels and tourist

facilities; entertainment

and tourist recreation

centers;; communication

centers; scientific

research centers and

scientific labs; artistic

media production;

conference and

exhibition centers;

transport and/or

distribution and/or




sea transport, and

railways.

National Y



banks,

telecommunications

companies that have


financial brokerage





financial leasing

business, and





railways, and road freight

transport), insurance and


basic mining and


generation and



distribution and/or



the pipelines.

National Y



banks,

telecommunications

companies that have


financial brokerage





financial leasing

business, and








basic mining and


generation and



distribution and/or



the pipelines.

National Y



hospitals and



tourist utilities,


scientific research







transport), basic mining

and extraction industries,

distribution , and

transport and/or

distribution and/or



the pipelines.

National Y

Reduced Tax Rate Economywide Subnational Y


Agriculture and







centers; scientific



media production;

conference and

exhibition centers;

transport and/or

distribution and/or




sea transport, and

railways.

National Y

Customs duty exemption Sector-specific ICT National Y

Tax exemption Sector-specific ICT National Y

Tax exemption Sector-specific ICT National Y

Reduced Tax Rate Sector-specific ICT National Y

Zero-rate tax Sector-specific ICT national Y


Zone-Specific/ASEZ-





Website (Web

link)

Incentive

Information

Available in

English (Y/N)

Development Zone-specific Y JIC www.jic.gov.jo N


C. INCENTIVE DESIGN D. INFO on TRANSPARENCY










Free Zone-specific Y JIC www.jic.gov.jo Y













Outside the Zones Y JIC www.jic.gov.jo Y





Outside the Zones N JIC www.jic.gov.jo Y





Outside the Zones Y JIC www.jic.gov.jo N






Outside the Zones N JIC www.jic.gov.jo Y

Inside and Outside the Zones Y JIC www.jic.gov.jo N











Legal Base

Available in

English (Y/N)






details)


Specified (Y/N)

N Automatic




the specified eligibility criteria

without further approvals.

However, the investor is still

required to obtain from the

customs representative at the

JIC a hard copy exemption

letter signed. The document is

then showed to the customs

authority at the port in order to

apply the exemption.

Y

N Automatic




the specified eligibility criteria

without further approvals.

However, the investor is still

required to obtain from the

customs representative at the

JIC a hard copy exemption

letter signed. The document is

then showed to the customs



Y

D. INFO on TRANSPARENCY E. INCENTIVE AWARDING

N Automatic









Y

N Automatic






services and activities to apply

the exemption on.

Y

N Automatic




Y

N Automatic











30 days

Y

N Automatic











30 days

Y

N Automatic


on Incentives shall look into

any application for the

reduction of the income tax

payable for the activity and

shall issue its decision within

a period not exceeding 30

working days as of the


Y

N Automatic







the exemption on.

Y

N Automatic



Incentives.

Y

N Automatic



Incentives.

Y

N Automatic



Incentives.

Y

N Automatic



Incentives.

Y

N Automatic



Incentives.

Y

N



criteria









Y

N



criteria







the exemption on.

Y

N



criteria




Y

N Automatic

The investor fills in an

electronic form on the web-



receipt of the incentive

awarding without further

approvals. The investor is

refunded the tax amount from


Department within 30 days

Y

N Automatic







approvals. 2) The investor is




Y

N



criteria

The technical committee shall

look into any application for

the reduction of the income

tax payable for the activity

and shall issue its decision

within a period not exceeding

30 working days as of the


Y

N



criteria







the exemption on.

Y

N Discretional



Incentives.

Y

N Discretional



Incentives.

Y

N Discretional



Incentives.

Y

N Discretional



Incentives.

Y

N Discretional



Incentives.

Y



Available

Publically (Y/N)


Available in

English (Y/N)

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)











freight transport), insurance and reinsurance

companies, basic mining and extraction

industries, generation and distribution of

elasticity, and transport and/or distribution

and/or extraction of water, gas, and oil

derivatives using the pipelines.

Y N N


zonesY N N

E. INCENTIVE AWARDING






Development Area.

Y N N




Y N N

Goods offered by registered investors except

the sales of goods subject to the special

sales tax including vehicles, tobacco,

alcohol and beer are subject to the GST and

custom duties collected in Jordan when sold

for consumption in the Development Area.

The goods consumed in the development

areas are subject to the GST and customs

duties unless consumed for the purpose of

the practice of the economic activity of the

Registered Establishment.

Y N N







furnishing of projects established in the Free

Zones including spare parts for permanent

maintenance excluding service fees.

Y N N

Profits that come from: exportation of goods

inside the Free Zones; transit trade; sale or

waver of goods inside the Free Zones;

provision and supplying of services inside

the Free Zone.

Y N N











the Free Zone.

Y N N




Y N N

Production requirements and fixed assets for

industrial and crafts activities included in

Table 1/C of the Incentives Regulation

Y N N



Table 1/D of the Incentives Regulation

Y N N



Regulation

Y N N

Production inputs and fixed assets of the

manufacturing activities and crafts activities

stated in Tables 1/B, 1/C, and 1/D of the

Incentives Regulation provided it is

registered in GST

Y N N

Sectors included in Table 2 of the Incentives

RegulationY N N



Investments in regions from Investment

Law, Art. 5., Category A of the income tax

reduction regulation in the least developed

regions, based on the categorization of the

region (a,b,c,d)

Y N N



Regulation

Y N N



1/1/2016 dated 25/1/2016

Y N N



1/1/2016 dated 25/1/2016

Y N N



1/1/2016 dated 25/1/2016

Y N N



1/1/2016 dated 25/1/2016

Y N N



1/1/2016 dated 25/1/2016

Y N N

Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)



Monitoring

Mechanism

(Y/N)

JIC and Income and

Sales Tax

Department

Online Immediately after registration at


JIC and Income and

Sales Tax

Department

Online Y


JIC and Income and

Sales Tax

Department



JIC and Income and

Sales Tax

Department



JIC and Income and

Sales Tax

Department



JIC and Customs

AuthorityPaper




Authority representative at JIC. 2)

The investor applies the customs

exemption by showing the signed

authorization at the port.

Y

JIC and Customs

AuthorityPaper








Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC Paper

Direct implementation takes place

once the needed documents are

presented (exemption letter,


Y

JIC Paper





Y

JIC Paper

1) The investor can file the signed






the compliance with the eligibility

criteria and decide the volumes of

the fixed assets and activities to

apply the exemption on. 3) The

investor receives the exemption

letter and applies the incentive

showing the custom exemption


Y

JIC Paper











investor receives notification and

applies the incentive showing the

custom exemption authorization

at the port.

Y

JIC and Income and

Sales Tax

Department

Online

Regarding the articles stated in

table D: 1) The investor fills in an









Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC Paper














at the port.

Y

JIC Online Y

JIC Online Y

JIC Online Y

JIC Online Y

JIC Online Y

Monitoring

Authority (Name)


details)

Implementing

Authority (Name)

Appeal

Procedure (Y/N)

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y


JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Customs

Authority



basic and intermediate inputs

on a daily basis.



and incentives.

JIC and Customs

Authority

JIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY

JIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY

JIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY

JIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY

JIC; Income and

Sales Tax

Authority and

Customs

Department






and incentives.

JIC and Income

and Sales Tax

Department and

Customs

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC and Customs

Authority






and incentives.

JIC and Customs

AuthorityY

JIC and the

Customs

Department






and incentives.

JIC and the

Customs

Department

Y

JIC and the Income

Tax and Sales Tax

Department






and incentives.

JIC and the Income

Tax and Sales Tax

Department

Y

JIC and the Income

Tax and Sales Tax

Department






and incentives.

JIC and the Income

Tax and Sales Tax

Department

Y

JIC and the Income

Tax and Sales Tax

Department






and incentives.

JIC and the Income

Tax and Sales Tax

Department

Y

JIC and the Income

Tax and Sales Tax

Department






and incentives.

JIC and the Income

Tax and Sales Tax

Department

Y


Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

Awarded Firms in

Calendar Year X

(number)































































































































































































Window Regulations no. 32 to examine

the objections. The Governmental

Committee shall issue a decision within

30 days of referral of the objections.

The decision of the Committee may be

appealable before the Supreme Court of

Justice. This is addition to the

Investor's right to resort to the

administrative judiciary to object to the

rejection decision (Source: Investment

Law, Art 18 D-F)









Window Regulations no 32 for the year




























































































































Window Regulation No. 32 for the year









































Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally

Yes-internally


Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally


(additional details, etc.)Legal Reference (Y/N)


Free Zones

















Y

2 JIC_FZ2













Y

Investment Incentives Specific to Investors Inside the Free Zones in Jordan



in Free Zones




taxes.

Y


taxes in Free Zones




building taxes.

Y

5 JIC_FZ5







Y

6 JIC_FZ6









Y

Legal

Reference

Typology

(Primary;

Secondary;

Other)

Legal Reference Name Legal Reference (Law section/ Article)

Category (Tax

/Customs/Finan

cial)

Primary;

secondary



Regulation 33/2015

Investment Law Art 14.C Customs

Primary;

secondary




Tax Law 34/2014

Investment Law Art 14.A; Income Tax Law: Art. 78.B Tax


Primary;

secondary



Regulation 33/2015

Investment Law Art 14.D Tax

Primary;

secondary



Regulation 33/2015

Investment Law Art 14.D Tax

Primary;

secondary




Tax Law 29/2009

Investment Law Art. 12.D; Sales tax Law: Art. 22 Tax

Primary;

secondary




Tax Law 29/2009

Investment Law Art. 12.D; Sales Tax Law: Art. 22 Tax

Applicable


Economy

Wide/Sector-

Specific

SectorNational /

Subnational

Customs duty Customs duty exemption Sector-specific


designated for the

specific Free Zone.

Subnational

CIT Tax exemption Sector-specific


designated for the

specific Free Zone.

Subnational

C. INCENTIVE DESIGN

Land Tax Tax exemption Sector-specific


designated for the

specific Free Zone.

Subnational

Building Tax Tax exemption Sector-specific


designated for the

specific Free Zone.

Subnational

GST Tax exemption Sector-specificFor services offered in

the Free Zones.Subnational

GST Tax exemption Sector-specific

For goods consumed


business purposes

Subnational

Available for

Foreign Investors

(Y/N)


Zone-Specific/ASEZ-





Website (Web

link)

Y Free Zone-specific Y JIC www.jic.gov.jo













Incentive

Information

Available in

English (Y/N)

Legal Base

Available in

English (Y/N)






details)

Y N Automatic

The investor applies the

incentive automatically upon

satisfying the specified

eligibility criteria without

further approvals. However,

the investor is still required to








Y N Automatic












Y N Automatic











Y N Automatic











Y N Automatic











Y N Automatic












Specified (Y/N)Eligibility Criteria (description)


Available

Publically (Y/N)


Available in

English (Y/N)

Y










Y N

Y





the Free Zone.

Y N


YBuildings and constructions established in

the Free Zone by registered investors.Y N

YBuildings and constructions established in

the Free Zone by registered investors.Y N

YServices offered inside the Free Zones by

registered investors.Y N

Y





the Free Zone.

Y N

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)

Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)

N JIC and Customs

AuthorityPaper

N

JIC and Income and

Sales Tax

Department

Online

F. INCENTIVE ADMINISTRATIONE. INCENTIVE AWARDING

N

JIC and Income and

Sales Tax

Department

Online

N

JIC and Income and

Sales Tax

Department

Online

N

JIC and Income and

Sales Tax

Department

Online

N

JIC and Income and

Sales Tax

Department

Online



Monitoring

Mechanism

(Y/N)

Monitoring

Authority (Name)


details)

Implementing

Authority (Name)








YJIC and Customs

Authority






and incentives.

JIC and Customs

Authority










Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department











Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department










Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department










Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department










Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Appeal

Procedure (Y/N) Appeal Procedure (description)

Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

Y

















Y

















Y
















Y
















Y
















Y
















Awarded Firms in

Calendar Year X

(number)

Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally

Yes-internally


Yes-internally

Yes-internally

Yes-internally

Yes-internally



1 JIC_DZ1


Tax (CIT) to 5% in


economic activities



Tax (CIT) to 5% in


economic activities


Y

2 JIC_DZ2


Tax (CIT) to 5% in










Development Zones.

Y

Investment Incentives Specific to Investors Inside the Development Zones in Jordan


3 JIC_DZ3





Development Zones





Development Zones

Y

4 JIC_DZ4





Zones







activity inside the

Development Area.

Y

5 JIC_DZ5



offered inside the

Development Zone


originated in the




(GST)

Y

6 JIC_DZ6




Development Zones




materials used or







their continuous






Kingdom

Y

Legal

Reference

Typology

(Primary;

Secondary;

Other)


Article)

Category (Tax

/Customs/Finan

cial)

Applicable

Tax/Duty

Primary;

secondary




Tax Law 34/2014


Primary;

secondary




Tax Law 34/2014



Primary;

secondary




Tax Law 34/2014


Primary;

secondary




Tax Law 29/2009


Primary;

secondary




Tax Law 29/2009


Primary;

secondaryInvestment Law 30/2014 Investment Law Art. 12. & 13 Customs Customs duty


Economy

Wide/Sector-

Specific

SectorNational /

Subnational

Available for

Foreign Investors

(Y/N)


Any industrial,





in addition to IT

Subnational Y


Any industrial activity

registered in the

development zones

Subnational Y

C. INCENTIVE DESIGN





sectors: industry,


media, crafts, and


Subnational Y


Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.

Subnational Y


Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.

Subnational Y


Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.

Subnational Y


Zone-Specific/ASEZ-





Website (Web

link)

Incentive

Information

Available in

English (Y/N)














Legal Base

Available in

English (Y/N)






details)


Specified (Y/N)

N Automatic

By simply registering at JIC

and obtaining a certificate of




obtains incentives

automatically

Y

N Automatic Y


N Automatic









Y

N Automatic






obtains incentives

automatically

Y

N Automatic






obtains incentives

automatically

Y

N Automatic














Y



Available

Publically (Y/N)


Available in

English (Y/N)

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)

















Y N N


zonesY N N







Development Area.

Y N N




Y N N












Y N N

Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)



Monitoring

Mechanism

(Y/N)

JIC and Income and

Sales Tax

Department



JIC and Income and

Sales Tax

Department

Online Y


JIC and Income and

Sales Tax

Department



JIC and Income and

Sales Tax

Department



JIC and Income and

Sales Tax

Department



JIC and Customs

AuthorityPaper








Y

Monitoring

Authority (Name)


details)

Implementing

Authority (Name)

Appeal

Procedure (Y/N)

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y


JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Customs

Authority




on a daily basis.



and incentives.

JIC and Customs

Authority


Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

Awarded Firms in

Calendar Year X

(number)




























































































Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally

Yes-internally


Yes-internally

Yes-internally

Yes-internally

Yes-internally



1 ASEZ1



Zone (ASEZ)






exception of cars

Y

2 ASEZ2








the Aqaba Special


Y

3 ASEZ3











Zones)

Y

4 ASEZ4



Zone (ASEZ)




Zone (ASEZ)

Y

Investment Incentives Specific to Investors Inside the Aqaba Special Economic Zone (ASEZ)


5 ASEZ5



Zone (ASEZ)




Zone (ASEZ)

Y

6 ASEZ6








(ASEZ)

Y

Legal

Reference

Typology

(Primary;

Secondary;

Other)


Article)

Category (Tax

/Customs/Finan

cial)

Applicable

Tax/Duty

Primary ASEZA Law 32/2000



2000





2000

Tax GST




2000

Tax CIT




2000

Tax Building tax

Investment Incentives Specific to Investors Inside the Aqaba Special Economic Zone (ASEZ)





2000

Tax Land tax




2000

Tax CGT


Economy

Wide/Sector-

Specific

SectorNational /

Subnational

Available for

Foreign Investors

(Y/N)

Customs Duty Exemption Sector-specific


transportation and

tourism.

Subnational Y



transportation and

tourism.

Subnational Y



banks and financial


companies and


and road transport

companies.

Subnational Y



transportation and

tourism.

Subnational Y

C. INCENTIVE DESIGN



transportation and

tourism.

Subnational Y



transportation and

tourism.

Automatic Y


Zone-Specific/ASEZ-





Website (Web

link)

Incentive

Information

Available in

English (Y/N)

ASEZ-specific N N

ASEZ-specific N N

ASEZ-specific N N

ASEZ-specific N N


ASEZ-specific N N

ASEZ-specific N N

Legal Base

Available in

English (Y/N)






details)


Specified (Y/N)

N Automatic Y

N Automatic Y

N Automatic Y

N Automatic Y


N Automatic Y

N Automatic Y



Available

Publically (Y/N)


Available in

English (Y/N)

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)

Granted to companies registered in ASEZ Y N N













Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)



Monitoring

Mechanism

(Y/N)

ASEZA Paper 7Upon granting the registration

certificates and final approvalsY












Monitoring

Authority (Name)


details)

Implementing

Authority (Name)

Appeal

Procedure (Y/N)

ASEZA ASEZA

ASEZA ASEZA

ASEZA ASEZA

ASEZA ASEZA


ASEZA ASEZA

ASEZA ASEZA


Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

Awarded Firms in

Calendar Year X

(number)

3788

3788

3788

3788


3788

3788

Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally

Yes-internally

Yes-internally

Yes-internally


Yes-internally

Yes-internally



Legal

Reference

(Y/N)

Legal

Reference

Typology

(Primary;

Secondary;

Other)

1 JLGC1 JLGC - SME Loan guarantee




period: 72 months.


N


guarantee





70%

N


guarantee





70%

N

Investment Incentives Offered by the Jordan Loan Guarantee Corporation (JLGC)



financing





70%

N


guarantee





75%.

N


guarantee





70%.

N


guarantee

Export guarantee: Max credit

amount: 4 million JOD. Max

payment period: 6 months.

Guarantee ratio: 90%.

N


guarantee



JOD. Max payment period: 4


90%.

N


Article)

Category (Tax

/Customs/Finan

cial)

Applicable

Tax/Duty

Financial

Financial

Financial


Financial

Financial

Financial

Financial

Financial


Economy

Wide/Sector-

Specific

SectorNational /

Subnational

Available for

Foreign Investors

(Y/N)

Loan guarantee Economywide National Y

Loan guarantee Sector-specific Industry and Handicraft National Y


C. INCENTIVE DESIGN


Loan guarantee Sector-specific Real estate National Y





Zone-Specific/ASEZ-





Website (Web

link)

Incentive

Information

Available in

English (Y/N)

Inside and Outside the Zones Y

Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y






Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y






Legal Base

Available in

English (Y/N)






details)


Specified (Y/N)

Discretional



in addition to ensuring that the

purpose of the loan is meeting

the loan guarantee criteria.

When clients submit a loan

guarantee application, it will

be financially analyzed, then

an approved written letter is

provided to the client.

Y

Discretional Case by case Y

Discretional case by case Y


Discretional











Y

Discretional











Y

Discretional








Y

Discretional



buyers.


credit limits




4. Providing a Price Offer, and

receiving the acceptance by

the Potential policy holder



Y




Available

Publically (Y/N)


Available in

English (Y/N)

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)

Insurance on the life of the borrower/ client


N Y N

N Y N





Life Insurance of the borrowed N Y N







Y Y Y

http://www.jl

gc.com/en/pa

ge/services-

and-programs






Y Y Y

http://www.jl

gc.com/en/pa

ge/services-

and-programs








Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)



Monitoring

Mechanism

(Y/N)

JLGC credit

committeePaper

Maximum two

working days

JLGC credit

committeePaper

Maximum three

working days Y

JLGC credit

committeePaper

Maximum three

working days Y


JLGC credit

committeePaper

Maximum two

working daysY

JLGC credit

committeePaper

Maximum two

working daysY

JLGC credit

committeePaper

Maximum two

working daysY

PaperMaximum 15

working daysY

PaperMaximum 15

working daysY

Monitoring

Authority (Name)


details)

Implementing

Authority (Name)

Appeal

Procedure (Y/N)

Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

N

* risk management

consultants:

guaranteed amount

50 thousand Dinar

or higher….

*internal auditor:

randomly selected

loan applications

JLGC credit

committee Y

*risk management

consultants:

guaranteed amount

of 50 thousand JD

or above *internal

auditor: randomly

selected loan

application

JLGC credit

committee Y


Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

y

Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

y

Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

y

The internal

auditor takes

samples at the end

of each month.

JLGC credit

committee Y

The internal

auditor takes

samples at the end

of each month.

JLGC credit

committee Y


Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

Awarded Firms in

Calendar Year X

(number)


the additional information sent from the

bank.

# of loan=475

The face

value=16119629 JD

# of loan=475

The face

value=16119629 JD

707

By email with further clarification 2015: 17,818,308 JD 2015:13,259,909 JD 71

By email with further clarification 2015:6,091,520 JD 2015: 4,213,913 JD 3




bank.

Included in the SME

(above)

Included in the SME

(above)

Included in the SME

(above)



bank.

# of loan=32


JD

# of loan=32

The face

value=2017222 JD

62



bank.

0 0 0





the buyer.

50,000,000 JDs 45,275,209.237 JDs 729





the buyer.

10,000,000 JDs 5,878,942.182 JDs 291

Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally

Yes-internally

Yes-internally


Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally



Legal

Reference

(Y/N)

Legal

Reference

Typology

(Primary;

Secondary;

Other)

1 JEDCO1

JEDCO - Governorate


subsidized loans



domestic SMEs under







currently takes place using in

kind shares, whereby the

minimum funding of the fund

would be 100.00 JDs,










including 2 years as a grace

period. The Fund aims to

invest in SMEs and big

companies whether they are

under establishment and

construction or the existing

companies that aim to start

working or expanding in

productive projects (in the

industrial and services

Y Other

Investment Incentives Offered by Jordan Enterprise Development Corporation (JEDCO)


2 JEDCO2




















(KAFD) and administered by

JICN. All projects that have

received a grant shall be

subject to income tax and





Y Primary


Article)

Category (Tax

/Customs/Finan

cial)

Applicable

Tax/Duty

Cabinet decisionCabinet decision no. 617 dated

3/7/2012Financial

Investment Incentives Offered by Jordan Enterprise Development Corporation (JEDCO)


Corporation Law no. 33 for

the year 2008Article 5, paragraph C Financial


Economy

Wide/Sector-

Specific

SectorNational /

Subnational

Available for

Foreign Investors

(Y/N)

Subsidized loan Sector-specificIndustry, services,

agricultural industrySubnational Y

C. INCENTIVE DESIGN

Matching grant Sector-specificFood industries; creative

industries; light industry; Subnational N


Zone-Specific/ASEZ-





Website (Web

link)

Incentive

Information

Available in

English (Y/N)

Inside and Outside the Zones Y JEDCO www.jedco.gov.jo Y



Inside and Outside the Zones YJEDCO; Business

Innovation Center

www.jedco.gov.jo

and www.bic.joY



Legal Base

Available in

English (Y/N)






details)


Specified (Y/N)



criteria








from JEDCO

Y


Y



criteria






the program.

Y



Available

Publically (Y/N)


Available in

English (Y/N)

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)




available. The Jordanian labor should not be

less than 60%. The project owner should

highlight the economic impact of the project

through the added value it represents in

terms of providing new work opportunities

and migrant workers substitution, and cross-

cutting with different sectors and providing

export opportunities

Y Y Ywww.jedco.g

ov.jo




Of Jordanian nationality, mature, adult,

sane,(above 18) has an idea of an achievable

project, and of an economic feasibility. Has

scientific and technical qualifications in the

field of the project. Enrolment in a training

course entitled "establish your own

business". Implementation of the project in

any governorate except for the Capital and


service oriented.

Y N Y

www.jedco.g

ov.jo and

www.bic.jo




Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)



Monitoring

Mechanism

(Y/N)

JEDCO Paper 3-9 months








Y


Jordan Innovation

Centers Network

(JICN)/Business

Incubators

Paper

The technical

committee for

incentives

checks the

compliance with

the eligibility

criteria and

decides if the

company can

benefit from the

program






awarding.

Monitoring

Authority (Name)


details)

Implementing

Authority (Name)

Appeal

Procedure (Y/N)

JEDCO





of the Fund

JEDCO


Jordan Innovation

Centers Network

(JICN)

Y


Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

Awarded Firms in

Calendar Year X

(number)


end of 2016 and


the end of 2018

59 million JOD








112 have benefited

between 2010 and 2015

Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally


Yes-internally



Legal

Reference

(Y/N)

Legal

Reference

Typology

(Primary;

Secondary;

Other)

1 MEMR1



and energy efficiency



sources and energy


equipment

YPrimary;

secondary

Investment Incentives Under the Jordan Ministry of Energy and Mineral Resources (MEMR)


2 MEMR2


renewable energy and energy

efficiency

Full exemption from customs

duties for renewable energy

sources and energy


equipment

YPrimary;

secondary


Category (Tax

/Customs/Finan

cial)

Applicable

Tax/Duty

1) Law No. (13) Of 2012




and Conditions for Exempting

Renewable Energy Sources

and Energy Conservation

Systems and Equipment and

their Production Inputs from

Customs Duties and



1) Law No. (13) Of 2012

Renewable Energy & Energy Efficiency Law:

Article 11.a-b; 2) Bylaw No 13 of 2015 on the

Provisions and Conditions for Exempting

Renewable Energy Sources and Energy

Conservation Systems and Equipment and their

Production Inputs from Customs Duties and

Subjecting Them to the Generals Sales Tax of

Zero.

Tax GST

Investment Incentives Under the Jordan Ministry of Energy and Mineral Resources (MEMR)


1) Law No. (13) Of 2012









Customs Duties and



1) Law No. (13) Of 2012

Renewable Energy & Energy Efficiency Law:

Article 11.a-b; 2) Bylaw No 13 of 2015 on the

Provisions and Conditions for Exempting

Renewable Energy Sources and Energy

Conservation Systems and Equipment and their

Production Inputs from Customs Duties and

Subjecting Them to the Generals Sales Tax of

Zero.



Economy

Wide/Sector-

Specific

SectorNational /

Subnational

Available for

Foreign Investors

(Y/N)

Zero-rate tax Sector-specificRenewable Energy;

Energy EfficiencyNational Y

C. INCENTIVE DESIGN

Customs duty exemption Sector-specificRenewable Energy;

Energy EfficiencyNational Y


Zone-Specific/ASEZ-





Website (Web

link)

Incentive

Information

Available in

English (Y/N)


Ministry of

Energy and

Mineral Resources

(MEMR)

www.memr.gov.jo N




Ministry of

Energy and

Mineral Resources

(MEMR)

www.memr.gov.jo N


Legal Base

Available in

English (Y/N)






details)


Specified (Y/N)

N



criteria
















decision

Y


N



criteria
















decision

Y



Available

Publically (Y/N)


Available in

English (Y/N)

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)




2015, and 2) for the inputs from the

regulation no 13 for the year 2015

"Exemption provisions and conditions for


conservation systems exempting renewable

energy sources systems and equipment and

energy conservation systems and equipment

from customs duties and subjecting them to

the general sales tax at a rate of zero

Y N Ywww.me.mr.g

ov.jo







2015, and 2) Locally produced and imported

products that are considered production and

manufacturing inputs for renewable energy

sources and energy conservation systems

and equipment in Table 2 of Bylaw No 13

of 2015. From Bylaw No 13 of 2015 Article

9 A-B: "The following conditions shall

apply for exempting renewable energy

sources systems and equipment and energy









(JSMO) or any reference organization that it

accredits.









Committee may be satisfied with the two

conditions stipulated in Items 1 and 3 of

Y N Ywww.me.mr.g

ov.jo



Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)



Monitoring

Mechanism

(Y/N)

Committee on

exemption from

customs duties and

subjecting to the


rate of zero

Paper

Within 30 days

of submission of

the complete

application

according to

Article 5 of the

regulation


regulationY


Committee on

exemption from

customs duties and

subjecting to the


rate of zero

Paper

Within 30 days

of submission of

the complete

application

according to

Article 5 of the

regulation


regulationY

Monitoring

Authority (Name)


details)

Implementing

Authority (Name)

Appeal

Procedure (Y/N)

General Customs

Department, GST

Department

Ministry of Energy

and Mineral

Wealth in

cooperation and

coordination with

the concerned

entities

Y


General Customs

Department, GST

Department

Ministry of Energy

and Mineral

Wealth in

cooperation and

coordination with

the concerned

entities

Y


Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

Awarded Firms in

Calendar Year X

(number)










Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally


Yes-internally



Legal

Reference

(Y/N)

Legal

Reference

Typology

(Primary;

Secondary;

Other)

1 JIC_DZ1


Tax (CIT) to 5% in


economic activities



Tax (CIT) to 5% in


economic activities


YPrimary;

secondary

2 JIC_DZ2


Tax (CIT) to 5% in










Development Zones.

YPrimary;

secondary

Tax Incentives Available to Investors in Jordan


3 JIC_DZ3





Development Zones





Development Zones

YPrimary;

secondary

4 JIC_DZ4





Zones







activity inside the

Development Area.

YPrimary;

secondary

5 JIC_DZ5



offered inside the

Development Zone


originated in the




(GST)

YPrimary;

secondary

7 ASEZ2








the Aqaba Special


Y Primary

8 ASEZ3











Zones)

Y Primary

9 ASEZ4



Zone (ASEZ)




Zone (ASEZ)

Y Primary

10 ASEZ5



Zone (ASEZ)




Zone (ASEZ)

Y Primary

11 ASEZ6








(ASEZ)

Y Primary

12 JIC_FZ2













YPrimary;

secondary


in Free Zones




taxes.

YPrimary;

secondary


taxes in Free Zones




building taxes.

YPrimary;

secondary

15 JIC_FZ5







YPrimary;

secondary

16 JIC_FZ6









YPrimary;

secondary

18 JIC6






Development Zones



manufacturing and



Regulation

YPrimary;

secondary

19 JIC7





the Free Zones and

Development Zones








Regulation

YPrimary;

secondary

21 TAX1Loss carry forward for up to

5 years

Losses approved by the Tax

Authority can be carry

forward for up to 5 years.

Carry back of losses is not

permitted

Y Primary

22 TAX2






Zones






Zones (instead of the


Y Primary

23 TAX3

Exemption from Corporate

Income Tax (CIT) for capital

gains for all economic

activities

Income derived from capital

gains is generally exempted

from taxation, except for




goodwill) and capital gains

recognized by banks,

primary telecommunication

companies, mining




insurance and reinsurance

companies, and juristic

persons conducting financial

lease activities.

Y Primary


Article)

Category (Tax

/Customs/Finan

cial)

Applicable

Tax/Duty




Tax Law 34/2014





Tax Law 34/2014






Tax Law 34/2014




Regulation 33/2015




Regulation 33/2015


ASEZA Law 32/2000



2000

Tax GST

ASEZA Law 32/2000



2000

Tax CIT

ASEZA Law 32/2000



2000

Tax Building tax

ASEZA Law 32/2000



2000

Tax Land tax

ASEZA Law 32/2000



2000

Tax CGT




Tax Law 34/2014


Tax Law: Art. 78.BTax CIT



Regulation 33/2015

Investment Law Art 14.D Tax Land Tax



Regulation 33/2015

Investment Law Art 14.D Tax Building Tax




Tax Law 29/2009


tax Law: Art. 22 Tax GST




Tax Law 29/2009


Tax Law: Art. 22 Tax GST



Regulation 33/2015





Regulation 33/2015



Income Tax Law 34/2014 Tax CIT




Economy

Wide/Sector-

Specific

SectorNational /

Subnational

Available for

Foreign Investors

(Y/N)


Any industrial,










Medium and Heavy





and the Dead Sea:



Subnational Y


Any industrial,










Medium and Heavy





and the Dead Sea:



Subnational Y

C. INCENTIVE DESIGN





sectors: industry,


media, crafts, and


Subnational Y


Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.

Subnational Y


Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.

Subnational Y



transportation and

tourism.

Subnational Y



banks and financial


companies and


and road transport

companies.

Subnational Y



transportation and

tourism.

Subnational Y



transportation and

tourism.

Subnational Y



transportation and

tourism.

Automatic Y



designated for the

specific Free Zone.

Subnational Y



designated for the

specific Free Zone.

Subnational Y



designated for the

specific Free Zone.

Subnational Y

Tax exemption Sector-specificFor services offered in

the Free Zones.Subnational Y


For goods consumed


business purposes

Subnational Y



banks,

telecommunications

companies that have


financial brokerage





financial leasing

business, and








basic mining and


generation and



distribution and/or



the pipelines.

National Y



hospitals and



tourist utilities,


scientific research







transport), basic mining

and extraction industries,

distribution , and

transport and/or

distribution and/or



the pipelines.

National Y

Loss carry forward Economywide National Y

Reduced Tax Rate Sector-specific Industry and Handicraft National Y

Tax exemption Economywide





goodwill) and capital

gains recognized by

banks, primary

telecommunication

companies, mining




insurance and


and juristic persons

conducting financial

lease activities.

National Y


Zone-Specific/ASEZ-





Website (Web

link)

Incentive

Information

Available in

English (Y/N)











ASEZ-specific N N

ASEZ-specific N N

ASEZ-specific N N


ASEZ-specific N N

ASEZ-specific N N














Inside and Outside the Zones

Outside the Zones


Inside and Outside the Zones

Legal Base

Available in

English (Y/N)






details)


Specified (Y/N)

N Automatic







obtains incentives

automatically

Y

N Automatic







obtains incentives

automatically

Y


N Automatic









Y

N Automatic







obtains incentives

automatically

Y

N Automatic







obtains incentives

automatically

Y

N Automatic Automatic Y




N Automatic










Y

N Automatic











30 days

Y

N Automatic











30 days

Y

N Automatic











30 days

Y

N Automatic











30 days

Y

N Automatic











30 days

Y



Automatic

Automatic Automatic

Automatic Automatic



Available

Publically (Y/N)


Available in

English (Y/N)

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)

















Y N N


zonesY N N







Development Area.

Y N N




Y N N













the Free Zone.

Y N N













the Free Zone.

Y N N

Sectors included in Table 2 of the Incentives

RegulationY N N



Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)



Monitoring

Mechanism

(Y/N)

JIC and Income and

Sales Tax

Department



JIC and Income and

Sales Tax

Department

Online Y


JIC and Income and

Sales Tax

Department



JIC and Income and

Sales Tax

Department



JIC and Income and

Sales Tax

Department













JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

JIC and Income and

Sales Tax

Department

Online










Y

Income and Sales

Tax Department

Income and Sales

Tax Department

Income and Sales

Tax Department

Monitoring

Authority (Name)


details)

Implementing

Authority (Name)

Appeal

Procedure (Y/N)

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y


JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

ASEZA ASEZA

ASEZA ASEZA

ASEZA ASEZA

ASEZA ASEZA

ASEZA ASEZA

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

JIC; Income and

Sales Tax

Authority






and incentives.

JIC and Income

and Sales Tax

Department

Y

Income and Sales

Tax Department

Income and Sales

Tax Department

Income and Sales

Tax Department


Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

Awarded Firms in

Calendar Year X

(number)













































































3788

3788

3788

3788

3788










































































































Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally

Yes-internally


Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally



Legal

Reference

(Y/N)

Legal

Reference

Typology

(Primary;

Secondary;

Other)

1 JIC_DZ6




Development Zones




materials used or







their continuous






Kingdom

YPrimary;

secondary

Customs Incentives Available to Investors in Jordan


2 MEMR2


renewable energy and energy

efficiency

Full exemption from customs

duties for renewable energy

sources and energy


equipment

YPrimary;

secondary

3 ASEZ1



Zone (ASEZ)






exception of cars

Y Primary

4 JIC1




sectors







Regulation

YPrimary;

secondary

5 JIC2





Free Zones and the

Development Zones

Customs duty exemptions for

the industrial and crafts



Regulation

YPrimary;

secondary

6 JIC3








Zones


fixed assets for industrial and

handicraft activities listed in

Table 1/D of the Incentives

Regulation.

YPrimary;

secondary

7 JIC4




Free Zones and the

Development Zones



sectors in Table 3

YPrimary;

secondary

8 JIC9




Free Zones and the

Development Zones





YPrimary;

secondary

9 JIC_ICT1


the import of goods by firms

in the ICT sector




the Decision of JIC


1/1/2016 dated 25/1/2016 by


YPrimary;

secondary


Free Zones

















YPrimary;

secondary

11

12

13

14

15

16

17

18

19

20

21

22

23


Investment Law 30/2014 Investment Law Art. 12. & 13

B. LEGAL REFERENCE

1) Law No. (13) Of 2012









Customs Duties and



1) Law No. (13) Of 2012

Renewable Energy & Energy Efficiency Law: Article 11.a-b; 2) Bylaw No 13

of 2015 on the Provisions and Conditions for Exempting Renewable Energy

Sources and Energy Conservation Systems and Equipment and their

Production Inputs from Customs Duties and Subjecting Them to the Generals

Sales Tax of Zero.

ASEZA Law 32/2000 Article 30 of ASEZA Law and its amendments no. 32 of the year 2000



Regulation 33/2015

Investment Law: Art. 4 Para. B; Incentives Regulation: Tables 1/A and 1/B



Regulation 33/2015

Investment Law, Art. 4 Para. B; Incentives Regulation: Table 1/C



Regulation 33/2015

Investment Law, Art. 4 Para. B; Incentives Regulation: Table 1/D



Regulation 33/2015

Investment Law, Art. 4 Para. B; Incentives Regulation: Table 3



Regulation 33/2015

Investment Law, Art. 4 Para. B; Incentives Regulation: Table 3




25/1/2016

Investment Law/article 8A, Decision of JIC Investment Council no. 1/1/2016

dated 25/1/2016: Tables 1-2



Regulation 33/2015

Investment Law Art 14.C

Category (Tax

/Customs/Finan

cial)

Applicable


Economy

Wide/Sector-

Specific

Sector


Any industrial,










Medium and Heavy





and the Dead Sea:




Technology and


Light and Medium

Manufacturing;


BPO and Healthcare.

C. INCENTIVE DESIGN

Customs Customs duty Customs duty exemption Sector-specificRenewable Energy;

Energy Efficiency

Customs Customs duty Customs Duty Exemption Sector-specific


transportation and

tourism.

Customs Customs duty Customs duty exemption Sector-specific Industry and Handicraft




Agriculture and







centers; scientific



media production;

conference and

exhibition centers;

transport and/or

distribution and/or




sea transport, and

railways.


Agriculture and







centers; scientific



media production;

conference and

exhibition centers;

transport and/or

distribution and/or




sea transport, and

railways.

Customs Customs duty Customs duty exemption Sector-specific ICT



designated for the

specific Free Zone.

National /

Subnational

Available for

Foreign Investors

(Y/N)


Zone-Specific/ASEZ-





Subnational Y Development Zone-specific Y JIC


National Y Inside and Outside the Zones Y

Ministry of

Energy and

Mineral Resources

(MEMR)

Subnational Y ASEZ-specific N

National Y Outside the Zones Y JIC



National Y Outside the Zones N JIC

National Y Outside the Zones N JIC

National Y Inside and Outside the Zones Y JIC

Subnational Y Free Zone-specific Y JIC

Website (Web

link)

Incentive

Information

Available in

English (Y/N)

Legal Base

Available in

English (Y/N)






details)

www.jic.gov.jo N N Automatic
















www.memr.gov.jo N N



criteria
















decision

N N Automatic


www.jic.gov.jo Y N Automatic






























www.jic.gov.jo Y N



criteria









www.jic.gov.jo Y N



criteria







the exemption on.



www.jic.gov.jo Y N



criteria







the exemption on.

www.jic.gov.jo N N Discretional



Incentives.



















Specified (Y/N)Eligibility Criteria (description)


Available

Publically (Y/N)


Available in

English (Y/N)

Y












Y N


Y




2015, and 2) Locally produced and imported

products that are considered production and

manufacturing inputs for renewable energy

sources and energy conservation systems

and equipment in Table 2 of Bylaw No 13

of 2015. From Bylaw No 13 of 2015 Article

9 A-B: "The following conditions shall

apply for exempting renewable energy

sources systems and equipment and energy









(JSMO) or any reference organization that it

accredits.









Committee may be satisfied with the two

conditions stipulated in Items 1 and 3 of

Y N

Y Granted to companies registered in ASEZ Y N

Y




Y N

Y



Table 1/C of the Incentives Regulation

Y N

Y



Table 1/D of the Incentives Regulation

Y N

Y



Regulation

Y N

Y



Regulation

Y N

Y



1/1/2016 dated 25/1/2016

Y N

Y










Y N

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)

Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)

N JIC and Customs

AuthorityPaper

F. INCENTIVE ADMINISTRATIONE. INCENTIVE AWARDING

Ywww.me.mr.g

ov.jo

Committee on

exemption from

customs duties and

subjecting to the


rate of zero

Paper

Within 30 days

of submission of

the complete

application

according to

Article 5 of the

regulation

N ASEZA Paper 7




N JIC Paper

N JIC Paper

N JIC Paper

N JIC Paper

N JIC Paper

N JIC Online

N JIC and Customs

AuthorityPaper



Monitoring

Mechanism

(Y/N)

Monitoring

Authority (Name)


details)

Implementing

Authority (Name)








YJIC; Customs

Authority




on a daily basis.



and incentives.

JIC and Customs

Authority



regulationY

General Customs

Department, GST

Department

Ministry of Energy

and Mineral

Wealth in

cooperation and

coordination with

the concerned

entities







YJIC and Customs

Authority






and incentives.

JIC and Customs

Authority





YJIC and Customs

Authority






and incentives.

JIC and Customs

Authority











investor receives the exemption

letter and applies the incentive

showing the custom exemption


YJIC and Customs

Authority






and incentives.

JIC and Customs

Authority














at the port.

YJIC and Customs

Authority






and incentives.

JIC and Customs

Authority














at the port.

YJIC and Customs

Authority






and incentives.

JIC and Customs

Authority

Y

JIC and the

Customs

Department






and incentives.

JIC and the

Customs

Department








YJIC and Customs

Authority






and incentives.

JIC and Customs

Authority

Appeal

Procedure (Y/N) Appeal Procedure (description)

Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

















Y





Y









Window Regulations no. 32 to examine

the objections. The Governmental

Committee shall issue a decision within

30 days of referral of the objections.

The decision of the Committee may be

appealable before the Supreme Court of

Justice. This is addition to the

Investor's right to resort to the

administrative judiciary to object to the

rejection decision (Source: Investment

Law, Art 18 D-F)

Y









Window Regulations no 32 for the year








Y

















Y

















Y

















Y










Y

















Awarded Firms in

Calendar Year X

(number)

Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally


Yes-internally

3788 Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally



Legal

Reference

(Y/N)

Legal

Reference

Typology

(Primary;

Secondary;

Other)

1 JEDCO1

JEDCO - Governorate


subsidized loans



domestic SMEs under







currently takes place using in

kind shares, whereby the

minimum funding of the fund

would be 100.00 JDs,










Y Other

Financial Incentives Available to Investors in Jordan


2 JEDCO2




















(KAFD) and administered by

JICN. All projects that have

received a grant shall be

subject to income tax and





Y Primary

3 JLGC1 JLGC - SME Loan guarantee




period: 72 months.


N


guarantee





70%

N


guarantee





70%

N


financing





70%

N


guarantee





75%.

N


guarantee





70%.

N


guarantee

Export guarantee: Max credit

amount: 4 million JOD. Max

payment period: 6 months.

Guarantee ratio: 90%.

N


guarantee



JOD. Max payment period: 4


90%.

N


Article)

Category (Tax

/Customs/Finan

cial)

Applicable

Tax/Duty

Cabinet decisionCabinet decision no. 617 dated

3/7/2012Financial


Corporation Law no. 33 for

the year 2008Article 5, paragraph C Financial

Financial

Financial

Financial

Financial

Financial

Financial

Financial

Financial


Economy

Wide/Sector-

Specific

SectorNational /

Subnational

Available for

Foreign Investors

(Y/N)

Subsidized loan Sector-specificIndustry, services,

agricultural industrySubnational Y

C. INCENTIVE DESIGN

Matching grant Sector-specificFood industries; creative

industries; light industry; Subnational N


Loan guarantee Sector-specific Industry and Handicraft National Y



Loan guarantee Sector-specific Real estate National Y





Zone-Specific/ASEZ-





Website (Web

link)

Incentive

Information

Available in

English (Y/N)

Inside and Outside the Zones Y JEDCO www.jedco.gov.jo Y



Inside and Outside the Zones YJEDCO; Business

Innovation Center

www.jedco.gov.jo

and www.bic.joY


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y






Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y






Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y


Jordan Loan

Guarantee

Corporation

(JLGC)

www.jlgc.com Y



Legal Base

Available in

English (Y/N)






details)


Specified (Y/N)



criteria








from JEDCO

Y


Y



criteria






the program.

Y

Discretional











Y


Discretional case by case Y

Discretional











Y

Discretional











Y

Discretional








Y

Discretional



buyers.


credit limits




4. Providing a Price Offer, and

receiving the acceptance by

the Potential policy holder



Y




Available

Publically (Y/N)


Available in

English (Y/N)

Eligibility

Criteria

Available

Online (Y/N)

Eligibility

Criteria

(web link)




available. The Jordanian labor should not be

less than 60%. The project owner should

highlight the economic impact of the project

through the added value it represents in

terms of providing new work opportunities

and migrant workers substitution, and cross-

cutting with different sectors and providing

export opportunities

Y Y Ywww.jedco.g

ov.jo




Of Jordanian nationality, mature, adult,

sane,(above 18) has an idea of an achievable

project, and of an economic feasibility. Has

scientific and technical qualifications in the

field of the project. Enrolment in a training

course entitled "establish your own

business". Implementation of the project in

any governorate except for the Capital and


service oriented.

Y N Y

www.jedco.g

ov.jo and

www.bic.jo

Insurance on the life of the borrower/ client


N Y N





N Y N













Y Y Y

http://www.jl

gc.com/en/pa

ge/services-

and-programs






Y Y Y

http://www.jl

gc.com/en/pa

ge/services-

and-programs





Awarding

Authority (Name)

Application Format

(online/paper)

Average

Length of

Awarding

Process (days)



Monitoring

Mechanism

(Y/N)

JEDCO Paper 3-9 months








Y


Jordan Innovation

Centers Network

(JICN)/Business

Incubators

Paper

The technical

committee for

incentives

checks the

compliance with

the eligibility

criteria and

decides if the

company can

benefit from the

program






awarding.

JLGC credit

committeePaper

Maximum two

working days

JLGC credit

committeePaper

Maximum three

working days Y

JLGC credit

committeePaper

Maximum three

working days Y

JLGC credit

committeePaper

Maximum two

working daysY

JLGC credit

committeePaper

Maximum two

working daysY

JLGC credit

committeePaper

Maximum two

working daysY

PaperMaximum 15

working daysY

PaperMaximum 15

working daysY

Monitoring

Authority (Name)


details)

Implementing

Authority (Name)

Appeal

Procedure (Y/N)

JEDCO





of the Fund

JEDCO


Jordan Innovation

Centers Network

(JICN)

Y

Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

N

* risk management

consultants:

guaranteed amount

50 thousand Dinar

or higher….

*internal auditor:

randomly selected

loan applications

JLGC credit

committee Y

*risk management

consultants:

guaranteed amount

of 50 thousand JD

or above *internal

auditor: randomly

selected loan

application

JLGC credit

committee Y

Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

y

Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

y

Risk Management

committee audit

any loan guarantee

application/cases

JLGC Risk

Management

committee and

Internal audit

committee

y

The internal

auditor takes

samples at the end

of each month.

JLGC credit

committee Y

The internal

auditor takes

samples at the end

of each month.

JLGC credit

committee Y


Budgeted Amount for

Calendar Year X

(local currency)

Awarded amount in

Calendar Year X

(local currency)

Awarded Firms in

Calendar Year X

(number)


end of 2016 and


the end of 2018

59 million JOD








112 have benefited

between 2010 and 2015



bank.

# of loan=475

The face

value=16119629 JD

# of loan=475

The face

value=16119629 JD

707

By email with further clarification 2015: 17,818,308 JD 2015:13,259,909 JD 71

By email with further clarification 2015:6,091,520 JD 2015: 4,213,913 JD 3



bank.

Included in the SME

(above)

Included in the SME

(above)

Included in the SME

(above)



bank.

# of loan=32


JD

# of loan=32

The face

value=2017222 JD

62



bank.

0 0 0





the buyer.

50,000,000 JDs 45,275,209.237 JDs 729





the buyer.

10,000,000 JDs 5,878,942.182 JDs 291

Name of Awarded

Firms in Calendar

Year X Available

(Yes - internally;

Yes - externally;

No)

Yes-internally


Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

Yes-internally

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