int@j sees bright future for ICT sector after gov’t incentives

AMMAN — The ICT Association of Jordan (int@j) on Sunday said incentives announced by the government will significantly boost the ICT sector, which contributes some 12 per cent to the country’s economy.

“These are unprecedented incentives that will greatly support the sector,” int@j CEO Khaled Hudhud said in a statement to The Jordan Times.

He stressed the importance of government support to the sector, which will increase Jordan’s exports and competitiveness amidst the turmoil in the region.

Under the decision, announced on Saturday, services related to software development, mobile apps, website portals, outsourcing, digital content and electronic games, information technology training and e-learning will be exempted from sales tax and customs duties. 

Goods and services necessary for ICT services will also be subject to a zero sales tax rate. Income tax rates on such services will be reduced by 30 per cent for 10 years, which means companies pay 14 per cent instead of 20 per cent as income tax.

In addition, minimum required capital restrictions for investments by non-Jordanians in the sector were removed.

Abed Shamlawi, an ICT consultant, told The Jordan Times in a recent interview that start-ups and entrepreneurs prefer to operate in markets where there are no requirements for high capital investment.

He stressed that removing the minimum capital restriction for investments by non-Jordanians is a great step towards making Jordan a hub for ICT start-ups.