Tax breaks to the ICT sector

In July 2010 the Cabinet exempted from income tax exported ICT services, including computer services, as well as economic feasibility studies and services related to legal, engineering and audit consultation. Companies providing broadband telecommunications services will also be exempt from annual fees provided they pass on the benefits to the public, either in terms of prices or in terms of expansion of services outside Amman. From beginning of August, the sales tax on Internet services will also be reduced to 8 percent, regardless of the technology used or the beneficiary. Previously the sales tax on wireless Internet connections for commercial and business users was 16 percent.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Services (Telecommunications, Computer programming, consultancy and related activities)

• Sources:

  • Economist Intelligence Unit, Economic policy: Government gives tax breaks to the ICT sector, http://portal.eiu.com/index.asp?layout=displayIssueArticle&issue_id=547328039&article_id=977328082, 02 Aug 2010