Jordan Corporate Tax Incentives
Program Overview
Jordan's corporate tax incentive program provides significant tax reductions to new businesses establishing operations in the kingdom. New companies receive a 30% reduction in corporate income tax for the first five years of operation. Information and communications technology (ICT) sector companies benefit from full corporate tax exemption through 2033, making Jordan one of the most attractive regional destinations for technology businesses.
Incentive Benefits
Standard corporate tax rate in Jordan is 20%. New businesses receive 30% reduction, lowering effective rate to 14% for the first five years. ICT companies in software development, telecommunications, IT services, and technology innovation sectors receive 100% exemption from corporate income tax through December 31, 2033. These incentives apply to qualifying income generated from business activities, significantly reducing tax liability during critical early growth years.
Eligibility Requirements
The 30% tax reduction applies to newly established companies registered in Jordan within the eligibility period. Businesses must be properly incorporated, maintain active operations, and comply with all registration and reporting requirements. For full ICT exemption through 2033, companies must operate primarily in information technology, telecommunications, software development, or related technology sectors. Both domestic and foreign-owned companies qualify, provided they meet registration and operational criteria.
Application Process
Register your business with Jordan's Ministry of Investment and Companies Control Department (CCD). Obtain Tax Identification Number (TIN) from Income and Sales Tax Department (ISTD). When filing corporate tax returns, declare eligibility for new business tax reduction or ICT sector exemption. Maintain proper documentation of business activities, especially for ICT companies claiming full exemption. Tax benefits apply automatically upon proper registration and classification.
Strategic Advantages
Jordan's location between major regional markets provides strategic access to Middle East and North Africa. The extended ICT tax exemption through 2033 creates long-term planning certainty for technology companies. Combined with Jordan's young, educated workforce, strong telecommunications infrastructure, and free trade agreements, these tax incentives position Jordan as a competitive hub for regional technology and business services operations.
Common Questions
Jordan offers reduced corporate income tax rates for companies operating in specific sectors and designated development zones. Businesses in the ICT sector, free zones, and the Aqaba Special Economic Zone can benefit from rates significantly below the standard corporate tax rate. The Investment Environment Commission administers these incentives and determines eligibility based on sector, location, and investment commitments.
Companies operating within Jordan's designated development zones benefit from reduced corporate income tax, exemptions from social services tax, customs duty exemptions on imported goods and materials, and reduced fees for various government services. The zones are strategically located across Jordan to encourage investment outside Amman. Companies must register with the relevant zone authority and maintain operations within the zone.
Jordan assigns preferential rates to IT, agriculture, manufacturing, and hospitality. Development zone operators access further reductions. Pharmaceuticals and garments maintain competitive treatment for exports. Renewables and companies outside Amman receive additional concessions reflecting geographic distribution and sustainable development priorities aligned with Vision 2025.
Aqaba Special Economic Zone and industrial estate tenants access parallel exemptions beyond sectoral preferences: customs elimination, sales tax waivers, and visa facilitation. These cumulative advantages create effective burdens well below headline rates, positioning Jordanian zones competitively against UAE, Bahrain, and Saudi Arabia for manufacturing and outsourcing investment.
Foreign investors establishing operations within designated development zones benefit from reduced corporate income tax rates compounded with bilateral investment treaty protections covering expropriation safeguards, capital repatriation guarantees, and international arbitration access through ICSID mechanisms. Jordan maintains an extensive treaty network spanning European, Gulf Cooperation Council, and East Asian jurisdictions providing most-favored-nation treatment assurances. Development zone locational advantages include proximity to Aqaba port facilities, overland trucking corridors to Iraqi and Saudi Arabian markets, and qualified industrial zone preferential tariff access for United States export destinations.
Jordan's pharmaceutical sector receives specialized incentive packages reflecting the kingdom's strategic objective to become a regional generic medicine manufacturing hub. Tax exemptions covering active pharmaceutical ingredient importation, laboratory analytical equipment procurement, and cleanroom facility construction expenses reduce establishment costs. Good Manufacturing Practice certification assistance through the Jordan Food and Drug Administration accelerates regulatory approval timelines. Medical device assembly ventures producing surgical instruments, diagnostic consumables, and dental prosthetic components access similar preferential treatment frameworks calibrated to healthcare sector capital expenditure patterns.
References
- Jordan - Corporate Tax Credits and Incentives. PwC (2025). View source
- Development Zones. Invest Jordan (2025). View source
- 2025 Investment Climate Statements: Jordan. U.S. Department of State (2025). View source
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