IT sector tax incentives expected soon — int@j

AMMAN — A number of incentives for IT companies in different areas are soon to be expected, greatly helping to increase their competitiveness and exports, the Information and Communications Technology Association (ICT) of Jordan (int@j) said Tuesday. 

The association, which has been working with stakeholders and authorities in the industry to come up with incentives, said they are needed to support the sector and improve exports.

They will be provided to IT companies working in the fields of software development, mobile applications, e-content, outsourcing, digital gaming, data processing and training in the IT sector, among others, according to int@j.

The incentives are expected to include a reduction of income tax on IT companies, a reduction in sales tax, and customs exemptions on items needed  to start businesses and operations, the association said in a statement to The Jordan Times.

“These incentives are very important. They will make Jordan more investment friendly … [they] will also support Jordan’s efforts in strengthening its knowledge-based economy as IT companies will become more competitive int@j said.

The incentives expected to be announced soon will benefit both existing companies and new investments, it said.

There are some 500-600 companies working in the ICT sector in Jordan.

According to latest available figures, the sector registered positive growth in 2013, with revenues growing by 3 per cent from $617 million in 2012 to $638 million.

Of the sector’s total revenues, the domestic market accounted for $313 million in 2013, registering a 1 per cent decline from 2012. 

Conversely, exports grew by 8 per cent in 2013, from $300 million the previous year to $324 million, according to a survey by int@j.