Wherever used in this Law, and unless the context otherwise provides, the following terms and expressions shall have the meanings ascribed thereto hereunder:

* The Council: The Higher Council for the Investment Promotion formed pursuant to this Law.

* The Corporation: The Investment Promotion Corporation established pursuant to this Law.

* The Board: The board of Directors of the Corporation.

* The Minister: The Minister of Industry and Trade.

* The Committee: The Investment Promotion Committee formed pursuant to this Law.

* The Director General: The Director General of the Corporation.

* The Project: Any economic activity to which the provisions of this Law and regulations and instructions issued hereunder shall apply.

* Fixed Assets: The necessary machinery, apparatus (es), equipment, supplies and tools to be exclusively used in the Project, and the furniture and supplies for hotels and hospitals.

* Fees: Import fees, custom duties and other fees imposed on Fixed Assets items in accordance with the applicable laws, with the exception of municipal fees.

* Taxes: Taxes imposed on Fixed Assets items pursuant to the applicable laws, with the exception of municipal taxes.

* The Investor: The natural or legal person investing in the Kingdom in accordance with the provisions of this Law.

* Production Capacity: The designed or occupancy capacity of the Project.

Any project falling within the following Sectors or Subsectors shall enjoy the exemptions and facilities provided by this Law:

1. Industry

2. The Agriculture Sector (without prejudice to other privileges provided in other Laws)

3. Hotels

4. Hospitals

5. Maritime Transport and Railways

6. Any other Sector or Subsectors the Council of Ministers approves of upon the Council’s recommendation *

*The following two Subsectors have been added by virtue of the Council of Ministers resolution dated October 28, 1997:

1. Leisure and Recreational Compounds

2. Conventions and Exhibition Centers

1. For the purposes of this Law, the (geographical) areas which enjoy tax exemptions shall be defined by three development areas (A, B, C), subject to the degree of economic development of such areas in each of the sectors listed in Article (3) herein, pursuant to a regulation to be issued for this purpose.

2. The Subsectors and investment activities listed in paragraph (a) of this Article, along with the eligibility conditions for the enjoyment of the privileges provided by this Law in each of the development areas designated hereunder, shall be specified in a regulation to be issued for this purpose.

For the purpose of this Law, the expression: “Invested Foreign Capital” shall mean money invested in the Kingdom by a non-Jordanian, cash or in kind, or any rights having a financial value, including the following:

1. Cash transferred to the Kingdom via licensed banks and financial institutions which is invested for the purposes of this Law.

2. The imported assets in kind whose cost has been paid outside the Kingdom.

3. Profits, returns and reserves resulting from investing Foreign Capital in the Project, provided that such profits, returns or reserves are used to increase the capital of the Project or are invested in another Project covered by the provisions of this Law.

4. Intangible rights such as licenses, patents, trademarks, and trade names registered in the Kingdom.

1. The Fixed Assets of the Project shall be exempt from Fees and Taxes provided that they are imported into the Kingdom within a period of three years from the date of the Committee’s decision approving the lists of Fixed Assets of the Project. The Committee may extend this period if it deems that the nature of the Project and the size of work require that.

2. Imported spare parts for the Project shall be exempt from Fees and Taxes provided that the value of such spare parts does not exceed 15% of the value of Fixed Assets for which they are required, and provided that they are imported into the Kingdom or used in the Project within a period of ten years from the date of commencement of production or work, in accordance to a decision taken by the Committee approving the lists of spare parts and their quantities.

3. The Committee shall exempt from Fees and Taxes Fixed Assets that are required for the expansion, development or modernization of the Project if such expansion, development or modernization shall result in an increase in the Production capacity of the Project by not less that 25%.

4. The Committee shall exempt from Fees and Taxes any increase in the value of the Fixed Assets which are imported for the Project if such increase is a result of a rise in the prices of such assets in the country of origin, of a rise in the freight charges applicable thereto or of changes in the exchange rate.

1. By a decision of the committee, the Project that falls within one of the sectors or subsectors listed in Article (3) of this law shall be exempted from income and social services taxes, by the following percentages in accordance with the development area applicable thereto:

25% if the Project is in a class A development area.

50% if the Project is in a class B development area.

75% if the Project is in a class C development area.

The Exemption period upon the committee’s decision shall be ten years starting from the date of commencement of work for services projects, or from the date of commencement of production for manufacturing projects.

2. The Committee shall grant an additional exemption if the Project has been expanded, developed or modernized with the result of increasing its Production Capacity, of one year per each increase in production not less than 25%, for a maximum period of four years.