Parliamentary Economy approves articles in the draft law regulating the investment environment

Amman Today

publish date 2022-08-13 18:53:45

The Parliamentary Committee on Economy and Investment approved, during its meeting, today, Saturday, with the government economic team, articles in the draft law regulating the investment environment for the year 2022.

Its chairman, Deputy Khair Abu Sa’ilek, said that the committee approved a number of articles after studying it and consulting the opinions of those concerned, noting that the most prominent of these articles is the third chapter related to “incentives granted outside development zones and free zones”, where he added the phrase “basic incentives and additional incentives” to this. the classroom.

The meeting was attended by the ministers: Planning and International Cooperation Nasser Al-Shraideh, Finance Muhammad Al-Assis, Digital Economy and Entrepreneurship Ahmed Al-Hanandeh, State for Legal Affairs Wafaa Bani Mustafa, Investment Khairy Amr, Industry, Trade and Supply Youssef Al-Shamali, in addition to Al-Ain Issa Murad, Secretary General of the Ministry of Investment Zaher Al-Qatarneh. The Director General of Income and Sales Tax, Husam Abu Ali, and the Director General of Customs, Jalal Al Qudah.

Abu Sa’ilek indicated that Article 9 was approved after striking out the phrase “in the areas it defines” at the end of item “1” of paragraph “b,” which states “The Council of Ministers, upon the recommendation of the Incentives and Exemptions Committee, issues a schedule that includes fixed assets, production requirements and inputs. And spare parts necessary for the exercise of economic activity are subject to tax at a zero rate in the areas it specifies.

The committee also approved Article 10 after making appropriate amendments to it and deleting some phrases, as it raised the exemption period for economic activities to become 5 years from the date of actual operation, instead of 3 years, as the article became as follows: “Despite what is stated in the income tax law, the Exemption from income tax due or reducing it by no less than 30% on economic activities in less developed regions in the Kingdom or projects that employ at least 250 Jordanians, and for a maximum period of 5 years from the date of actual operation. Economic activities that enjoy exemption from income tax and economic activities that enjoy a reduction in income tax and the reduction rates for each of them, the bases, standards, conditions and periods of enjoyment of exemption or reduction from income tax and the identification of the least developed regions in the Kingdom for the purposes of enjoying exemption or reduction from income tax when engaging in economic activity In it.” The official authority shall request the investor to submit any valid document issued by another official authority, if the electronic link is available between these two entities.

While the committee reformulated the preparation of the draft investment map for the Kingdom, which the Ministry of Investment undertakes the task of carrying out, to become as follows: “Prepare the draft investment map for the Kingdom according to the sectors and governorates that identify the available investment opportunities, including partnership projects with the private sector in coordination and cooperation with the concerned authorities, provided that the update is carried out continuously”.

With regard to the article concerned with the “Incentives and Exemptions Committee” formed by the Council of Ministers from among its members, provided that its membership includes the ministers of: investment, planning and international cooperation, industry, trade and supply, and finance, the committee added a text prohibiting any member of the committee from participating in Take any decision related to an economic activity, investment fund, or joint investment fund in which he and his spouses, branches or relatives up to the second degree may benefit directly or indirectly, and each of them must disclose any benefits that may accrue to any of them under penalty of legal responsibility.

It also approved the article that allows the Council of Ministers, upon the recommendation of the Incentives and Exemptions Committee, to adopt any incentives, advantages or exemptions for economic activities in any region of the Kingdom, including exemptions and incentives related to the price of the sale or rent allowance for lands owned by the public treasury for the purposes of establishing economic activities. Supporting energy and water costs, supporting renewable energy projects, and allowing investors to deduct the costs of establishing infrastructure services that they have connected to the economic activity from the receivables in case the project is operated within a certain period of time, and granting tax or customs exemptions or reductions in return for employing a minimum number of Jordanian workers.

The committee also added a text that defines the criteria that must be taken into account in granting incentives and benefits in a way that does not affect fair competition, namely: employing at least 350 Jordanians, and employing Jordanian workers with no less than 50 percent of the total employment, provided that the number is not less than 50 Jordanian female workers, economic activities targeting export markets by no less than 50 percent, local value-added activities by no less than 50 percent, activities targeting knowledge and technology transfer and digital transformation, strategic economic activities, and activities included in public partnership projects and private.

During the meeting, a wide discussion took place between the government team and the representatives: Talal Ensour, Ayman Madanat, Muhammad Jaradat, Abd al-Salam Thiabat, Hayel Ayyash, Amal al-Shaqran, Abd al-Rahman al-Awaysha, Omar al-Naber, and Suleiman Abu Yahya, who, in turn, made a number of proposals. And the observations that contributed to the amendment and improvement of the articles of the draft law.

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Parliament of Jordan

Source : اخبار الاردن

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