Cabinet approves tax exemptions for JFA, incentives for green hydrogen projects

Jordan Times

20 hours ago

AMMAN – The Cabinet has decided to exempt the Jordan Football Association (JFA) from sales tax on its revenues generated from sponsorship and marketing contracts, television broadcasting rights, and ticket sales.
The exemptions were approved during a session on Wednesday, chaired by Prime Minister Jafar Hassan, according to a Prime Ministry statement.
The decision follows prime minister's visit to the association in July and comes in recognition of the national team's recent historic qualification for the 2026 FIFA World Cup, the statement said.
During his visit to JFA, Hassan announced that the government would double the association's budget starting next year to help it continue its achievements. He also said at the time that the government will support the expansion of youth football training centres across the Kingdom's governorates and make use of the infrastructure of youth centres to develop training programmes for football and other sports.
The Cabinet also approved classifying donations to the JFA as tax-deductible and exempted individuals and entities contracted by the association from paying work permit fees, the statement said.
The Cabinet also endorsed a set of investment incentives for green hydrogen projects located outside the Aqaba Special Economic Zone, as recommended by the Ministry of Investment.
The new incentives include reducing income tax to 5 per cent, plus a 1 per cent national contribution, and full exemption from customs duties, import fees, and other taxes on all fixed assets and equipment, whether sourced locally or imported by project owners or contractors.
The incentives also include exempting projects, companies, and contractors, main and sub, from general sales tax and any other taxes, according to the statement.
The statement said that the incentives are expected to attract high-value investments, create both direct and indirect jobs, and advance Jordan's position as a regional hub for clean energy and green technologies, such as green ammonia production.
The Cabinet also approved the financing agreement and memorandum of understanding related to the financial assistance provided to Jordan by the European Union, amounting to €500 million. This is part of a €3 billion financial aid package announced by the EU for Jordan earlier this year for the period 2025–2027, within the framework of the Comprehensive Strategic Partnership Agreement between Jordan and the EU, which was signed by His Majesty King Abdullah at the end of January.
The aid package includes €640 million in grants, €1.4 billion in investments, and around €1 billion allocated for macroeconomic support, in recognition of the Kingdom's role and strategic partnership with the EU, the statement said.
The Cabinet also approved the 2025 bylaw for the Scientific Research and Innovation Support Fund.
The bylaw, the statement said, aims to provide a suitable environment for scientific research through research centres and to regulate the financial, administrative, and technical aspects related to the fund.