Government to Issue IT-Sector Incentives and Exemptions

تم نشره في Tue 5 April / Apr 2016. 11:00 PM
  • The Prime Ministry Building

AMMAN — The Cabinet decided to give privileges, incentives, and tax exemptions to IT companies with the aim to support, motivate, and encourage sector investments, given the sector has become a pillar component and growth motor for Jordan’s national economy.

Minister of Communications and Information Technology, Majd Shweikeh, stated in a press conference yesterday, Wednesday, that the suggestions approved by cabinet will soon formulate a relaunch point towards the realisation of His Majesty’s vision for Jordan becoming a regional IT hub, to platform for the attainment of the knowledge economy.

According to Shweikeh, the new plan is product of close deliberation, and joint research and exploration of the sector’s needs and requirements, and aims through incentives and exemptions to drive down the general costs of production for investors and beneficiaries of the sector, allowing for expansion and the attraction of new investments and the foundation of a wider labour base with more employment opportunities for youths, as well as to support entrepreneurs.

Therefore, certain core and fundamental commodities and products necessary for the activity of the IT sector and its services, have been exempted from Customs to be subject to zero general Taxation in cases of importation and local purchase. The sub-sectors of the industry excluded from exemptions in the new scheme are communications, research, consultancy, managerial, legal, and other business support and administrative services.

Moreover, the decision included a decrease of Income tax due on IT services to 0.5 per cent of taxable income in all regions of the Kingdom.

(Petra)

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