Gov’t issues conditional exemptions to hospitality, tourism enterprises in Aqaba

AMMAN — The Cabinet on Monday granted conditional exemptions and privileges to hospitality enterprises operating outside the Aqaba Special Economic Zone Authority’s (ASEZA) jurisdiction, the Jordan News Agency, Petra, reported.

Enterprise eligibility criteria to benefit from these exemptions will be set jointly by the Ministry of Tourism and Antiquities and the Jordan Investment Commission, the Petra statement said.

These incentives include tax cuts and exemptions that were first issued in a 2016 Cabinet decision to support the hospitality and tourism industries.

Enterprises such as hotels, restaurants, conference centres and other leisure facilities are covered in the decision.

All materials, equipment and spare parts needed by the aforementioned businesses, including those required for furnishing, construction and production, are to be exempted from customs, sales tax and all other taxes with the exception of the sale of services. 

Under the Cabinet’s decision, service sales will be subject to a 7 per cent tax and income will be subject to a flat 5 per cent tax for 10 years, according to Petra.

However, enterprises that meet the 2016 tax reduction by-law criteria for underdeveloped regions will be subject to a lower tax rate for a longer period of time.

Figures by the Department of Statistics, showed there were 43 hotels in Aqaba in 2016, including those on and off ASEZA premises.