Tax incentives seek to ‘make Jordan more competitive in ICT’

By Omar Obeidat

AMMAN –– New tax incentives for the information and communications technology (ICT) sector aim at making Jordan a regional centre for communication services.

“This is essential in light of increasing competition in other countries,” Minister of Information and Communications Technology Marwan Juma said Wednesday.

On Tuesday, the government endorsed a number of tax incentives for companies providing Internet and communications services, under which sales tax was reduced and unified on Internet services at 8 per cent regardless of the technology used or the beneficiary, effective August 1.

Under previous regulations, sales tax on Internet connections was 8 per cent for households and 16 per cent for commercial or business outlets, while the same tax was imposed on wireless Internet. Under the new incentives, the tax levied will be 8 per cent for all three services.

The new rules also exempt exported ICT services from income tax, including computer services, economic feasibility studies and services related to legal, engineering and audit consultation.

At a press conference held yesterday, Juma said that the more incentives given to the IT sector, whose exports reached $209 million in 2009, the more competitive the country will be in attracting investors, noting that the number of workers in the sector reached around 70,000 people as of the end of 2009.

According to Juma, providers of broadband telecommunication services will be exempt from annual fees of JD650,000 if they meet certain conditions, which entail the expansion of their services outside Amman and that the incentives are reflected in price cuts.

“These companies paid tens of millions to obtain operation licences and such incentives will help them continue their services and increase the number of their customers,” the minister remarked.

jordantimes