Jordan has had tax reductions for selective sectors categorised by development zones or free zone areas. Generally, these have required pre-approval.
The industrial sector will be granted tax liability reductions over the upcoming five years.
The extent to which a company is considered to fall within this tax rate reduction will be determined based on instructions that will be issued in due course.
Companies operating in the manufacturing of medicine and clothing can enjoy accelerated reductions in the CIT rates over other companies in the industrial sector. The amount of the reductions is set out below:
|Financial year||Medicine and clothing (%)||Others (%)|
Foreign tax credit
Foreign tax credit treatment is not available in Jordan.