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Aqaba is part of the Hashemite Kingdom of Jordan but also includes a special legal and economic framework for business and investment. Tax law affecting people and companies in Aqaba is a mix of national Jordanian tax legislation and a special regime that applies inside the Aqaba Special Economic Zone - commonly administered by the Aqaba Special Economic Zone Authority. The result is that some transactions and licensed activities in Aqaba may face different tax, customs and incentives rules compared with the rest of Jordan. Whether you are a resident individual, a local company, a foreign investor or a visitor, understanding the distinction between national tax law and the Aqaba special zone rules is the first step to meeting your tax obligations and identifying available benefits.
Tax matters can be technical and carry financial and legal risk. You may need a lawyer when:
- You are setting up a business in Aqaba and want to structure operations to comply with tax law while taking legitimate advantage of incentives.
- You need help applying for Aqaba Special Economic Zone licenses or approvals that affect tax status, customs treatment and incentives.
- You receive a tax assessment, audit notice or penalty from the tax authority or customs and need representation in administrative proceedings.
- You are involved in cross-border transactions, transfer pricing, withholding tax issues or treaty questions that affect tax liabilities.
- You have a dispute with the tax authority and want to file objections, request reconsideration, or represent you in court.
- You plan a real estate purchase, sale or development in Aqaba and need to understand transfer taxes, stamp duties and registration implications.
- You are unresolved on payroll tax, social security obligations or employer withholding duties for staff based in Aqaba.
- You require advice on tax compliance for expatriates, residence status, or estate and inheritance tax planning.
The local legal landscape that affects tax in Aqaba includes national laws and the special-zone framework. Key aspects to know are:
- National tax legislation - Jordanian income tax law, sales tax or value-added tax and the general framework for corporate and personal taxation apply across the kingdom. These laws set registration requirements, filing dates, assessment rules and penalties.
- Aqaba special zone regime - The Aqaba Special Economic Zone Authority administers a zone-specific legal regime that may offer preferential tax treatment, customs exemptions and regulatory facilitation for licensed activities. Eligibility and the scope of incentives depend on the license type and the sector.
- Customs and trade rules - Customs law applies to imports and exports, with special customs treatment often available for goods entering or leaving the Aqaba zone. Customs duties, declarations and bonding rules can be different inside the zone.
- Withholding taxes and nonresident rules - Payments to nonresidents for services, royalties, dividends and interest are generally subject to withholding at rates set by national law. Double tax treaties may reduce those rates for treaty-eligible entities.
- Tax procedure and dispute rules - Administrative processes govern assessment, objections, audits and appeals. There are specific time limits for filing returns, paying tax and challenging assessments.
- Social security and payroll - Employers in Aqaba must comply with social security law and payroll withholding rules, which operate alongside income tax obligations.
- Real estate and municipal taxes - Property taxes, stamp duties and local fees may apply for land and buildings in Aqaba and are implemented under national and local regulations.
Because laws and implementing regulations change, and because specific incentives depend on licensing and approvals, it is important to confirm the current legal position before acting.
Whether your business qualifies for special treatment depends on its location inside the Aqaba Special Economic Zone and on the license or approvals you hold from the Aqaba Special Economic Zone Authority. A licensed zone activity may receive tax incentives and customs benefits. You should collect your license documents and consult a local tax advisor or lawyer to confirm eligibility and any ongoing conditions you must meet.
Personal income tax is governed by national law and generally applies to residents throughout Jordan. However, employees and business owners working under specific Aqaba licenses may benefit from exemptions or reductions tied to the special zone regime. Residency, source of income and license status all affect liability, so professional advice is recommended to determine how the rules apply to an individual case.
Keep complete accounting records, invoices, receipts, bank statements, payroll ledgers and contracts. If you operate in the Aqaba zone you should also keep copies of your license, approvals, customs declarations and correspondence with the Aqaba authority. Records support filings, audits and any requests for incentives or refunds.
If you receive an audit notice or assessment, respond within the time limits stated and gather the documents the authority requests. A lawyer or tax specialist can help you prepare responses, negotiate with auditors, file formal objections and, if needed, represent you in administrative hearings or judicial review. Acting promptly reduces the risk of increased penalties and interest.
Foreign investors may qualify for incentives if they operate under a valid Aqaba license and meet the sector and investment requirements. Incentives can include favorable tax treatment, customs facilitation and investment support. The specifics depend on the license terms and current policy. Legal help can assist with the application process and compliance requirements.
Customs treatment for goods entering Aqaba can differ from standard national customs rules. Some goods and activities inside the Aqaba zone are eligible for customs exemptions or simplified procedures, but eligibility is not automatic for every import. Check your license conditions and customs declarations, and consult customs specialists or a lawyer before importing high-value or regulated goods.
VAT or sales tax is applied under national law, but operations inside the Aqaba zone can have specific rules for taxable supplies, exemptions and reporting. Whether supplies to or from the zone are taxable depends on the transaction type and the parties involved. Ensure your accounting and invoicing comply with both national tax requirements and any Aqaba-specific provisions.
Bring your business registration, licenses, recent tax returns, audit notices and any relevant contracts. Ask about the lawyer s experience with Aqaba special-zone matters, fees and billing, anticipated timeline, likely outcomes and what documents they will need. Confirm whether the lawyer works with local tax accountants if you need integrated advice.
Time limits are set by national tax procedure rules and may vary by type of assessment. There are also deadlines for administrative objections and judicial review. Missing a deadline can limit your options, so seek legal advice promptly after receiving an assessment to preserve your rights.
Yes. A tax lawyer can advise on eligibility, prepare and review applications, draft supporting legal documents, coordinate with accountants and liaise with the Aqaba authorities. Legal advice can reduce delays and help ensure that incentive approvals are structured to meet ongoing compliance obligations.
Useful institutions and resources to consult include:
- Aqaba Special Economic Zone Authority - the local authority that issues licenses and administers the special economic regime.
- National tax and customs administration - the government agency responsible for income tax, sales tax or VAT, and customs procedures.
- Ministry of Finance - provides national tax policy, legislation and guidance.
- Social Security Corporation - for employer and employee social security obligations.
- Commercial registry and land registry offices - for corporate registration and property matters.
- Local chambers of commerce and investment promotion agencies - for practical guidance on doing business in Aqaba.
- Professional advisors - licensed tax accountants and law firms with experience in Jordanian tax law and Aqaba special-zone practice.
If you need legal assistance with tax matters in Aqaba, consider these steps:
- Gather your documents - corporate documents, licenses, contracts, recent tax filings, correspondence with tax or customs authorities, and any notices received.
- Prepare a short summary of the issue - dates, parties involved, and the outcome you want.
- Look for a lawyer with local experience - choose counsel who understands both Jordan s national tax system and the Aqaba special zone rules, and who can work with accountants when needed.
- Request an initial consultation - use it to confirm scope, fees, likely timeline and next steps.
- Ask for a written engagement letter - this should define services, fees, confidentiality and responsibilities.
- Act promptly on deadlines - tax and customs matters often have strict time limits for filing responses and appeals.
Final note - this guide provides general information only and is not legal advice. For advice tailored to your particular facts and current law, consult a qualified tax lawyer or licensed tax professional in Aqaba, Hashemite Kingdom of Jordan.
