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.