DARB

Introduction:
Welcome to the 2022 edition of the MESA Tax Guide—a comprehensive overview of key tax provisions and regulatory frameworks across the Middle East and South Asia (MESA) region. In an era where tax considerations increasingly shape business strategies, staying abreast of the evolving tax landscapes is paramount for both local and international investors. This guide aims to provide insights into the tax incentives, amendments, and regulatory updates within the MESA region, enabling informed decision-making for businesses and individuals alike.

Jordan's Tax Landscape:
The Hashemite Kingdom of Jordan, nestled in the heart of the Middle East, stands as a beacon of economic development and investment opportunities. Under the visionary leadership of His Majesty King Abdullah II, Jordan has embarked on a journey to foster a conducive environment for investments, both domestic and foreign. The enactment of Investment Law 30 for the Year 2014 exemplifies Jordan's commitment to attract and incentivize investments across various sectors.

Tax Incentives:
One of the cornerstones of Jordan's investment strategy is the provision of tax incentives tailored to stimulate growth in specific sectors. Notably, manufacturing companies operating within Development Zones benefit from a reduced corporate income tax rate of 5%, provided they meet certain criteria, such as maintaining an in-country value of not less than 30%. Similarly, companies registered within the Aqaba Special Economic Zone enjoy a reduced corporate income tax rate of 5%, further enhancing the attractiveness of investment in these regions.

Moreover, recent amendments to the income tax law, effective from January 2019, have introduced favorable tax treatments for investors in the energy sector. These incentives encompass reductions in corporate income tax, withholding tax (WHT), general sales tax (GST), and custom duties, underscoring Jordan's commitment to fostering growth and innovation in strategic industries.

The Role of Tax Professionals:
In navigating the intricate terrain of taxation, businesses rely on the expertise of tax professionals who possess a nuanced understanding of local regulations and international tax frameworks. As a member firm of DARB, our 'thinking beyond borders' approach empowers us to deliver tailored solutions that transcend geographical boundaries. Our tax professionals collaborate closely with clients, offering bespoke services that address their unique challenges and objectives.

Looking Ahead:
As Jordan and other countries in the MESA region continue to chart a course towards economic prosperity, tax considerations will remain pivotal in shaping investment decisions and business strategies. By leveraging the insights provided in the MESA Tax Guide, stakeholders can navigate the complexities of taxation with confidence, unlocking new avenues for growth and innovation.

Conclusion:
In conclusion, the MESA Tax Guide serves as a valuable resource for businesses, investors, and policymakers seeking to navigate the dynamic tax landscapes of the Middle East and South Asia. By staying informed about key tax provisions, incentives, and regulatory updates, stakeholders can seize opportunities, mitigate risks, and contribute to sustainable economic development across the region. As we embark on this journey together, let us harness the power of knowledge and collaboration to build a future fueled by innovation, prosperity, and shared success.