Income Tax

ASEZA has created a simple corporate tax environment to maximize profits and minimize the complexities of doing business. Registered Enterprises enjoy a lifetime low flat income tax of 5 percent. Non-Registered Enterprises are subject to the current income tax rates prevailing in the Customs Territory of Jordan.

The Income Tax Division of ASEZA administers the tax regime within the Zone. All enterprises in the ASEZ must submit annual self-assessment income tax returns no later than April 30 of every year. Companies and individual taxpayers are subject to an advance payment and a withholding tax system. Under this system, all enterprises and individuals must remit payments to the ASEZA Income Tax Division. Additionally, ASEZA requires employers to withhold and remit income tax from employees on a monthly basis, regardless of whether the employee resides within or outside the Zone.

Registered Enterprises in the ASEZ enjoy the following special tax benefits :

• Special 5% tax rate on the total taxable income of Registered Enterprises accrued from activities within the ASEZ and outside Jordan.
• Exemption from social services tax.
• Exemption from annual land and building taxes on utilized property.
• Exemption from taxes on distributed dividends and profits on activities in the ASEZ and outside Jordan.

Goods and Services Sales Tax

In order to maintain the ASEZ as an attractive location for tourism and associated retail establishments, duty-free goods can be sold and consumed in the zone by residents and visitors alike. There is no sales tax on most goods sold in the ASEZ. Some consumer and industrial products and services, however, are subject to a sales tax of 7 percent.

Alcohol and tobacco products are subject to a Special Tax upon their importation into the Zone. The table in the Inserts further describes the Sales and Special Taxes items within the Zone. Additionally, ASEZA levies no sales tax on goods and services exported outside Jordan. An enterprise selling goods or services subject to the above taxes should apply to the ASEZA Revenue Directorate for the appropriate Goods and Services and Special Tax certificates before commencing any sales in the Zone.