🇯🇴 年度合规 — Jordan

Incorporating on the mainland when Aqaba SEZ would have been significantly cheaper

Fix: If your business does not require a physical Amman presence, seriously evaluate the Aqaba SEZ — 5% income tax vs 20%, 7% GST vs 16%, and 0% customs duties. Many tech and services companies operate from Aqaba with staff or clients elsewhere in Jordan.

Assuming 100% foreign ownership is available for all activity types

Fix: While most sectors allow 100% foreign ownership, some service activities (e.g., certain construction, engineering, and trading categories) cap foreign ownership at 50%. Check the specific activity classification with the Companies Control Department before incorporation.

Overlooking the 16% GST and its cash flow impact

Fix: Jordan's 16% GST is high by regional standards. Budget for the compliance cost and the cash flow impact of collecting and remitting GST. Registration is mandatory once annual taxable supplies exceed JOD 30,000.

Not leveraging the US-Jordan FTA and QIZ programme for exports

Fix: Jordan is one of the few countries with a free trade agreement with the US, and Qualified Industrial Zones allow duty-free exports to the US market. If you are manufacturing for export, structure your operations to take advantage of these preferential trade terms.