Productive Branches Initiative

Introduction:
In compliance with the royal directives to prepare and implement the necessary plans and projects to reduce the problems of poverty and unemployment and within the framework of the role assigned to the Ministry of Labor, it implements a number of projects and programs to employ Jordanians. One of the pioneering projects for the Ministry in this field is the project to establish productive branches for companies in areas with high rates of poverty and unemployment, which was implemented at the beginning of March 2008, with the support of the Royal Hashemite Court, where the financial support and the necessary facilities are provided for the success of this initiative, in addition to funding this initiative by the Professional and Technical Skills Development Authority and the Ministry of Planning and International Cooperation. This initiative is designed to establish branches and production units (new factories) in remote and poor areas to provide training and employment for unemployed Jordanians, especially females. The Ministry provides support to investors based on the Cabinet’s Resolution No. (2353) dated 13/06/2017 issued by letter of the Prime Minister No. 18/11/1/29009 dated 18/06/2017.
Existing productive branches:
The number of existing productive branches in all governorates of the Kingdom has reached (31) branches aiming to provide (10.930) job opportunities, and about (8000) male/female labour are currently employed.
The number of productive branches under construction and operation is (3) branches aiming to provide (600) job opportunities and it is expected to be operated during 2021.
The Productive Branches Unit is looking for investors within the plan of the Ministry of Labor in the various governorates of the Kingdom to establish (15) productive branches aiming to employ (4500) male/female labour.
The incentives and benefits that are offered to investors through the Ministry of Planning and International Cooperation or the Professional and Technical Skills Development Authority are summarized as follows:
1.       Contributing to subsidizing the construction cost by (225-250) dinars per square meter.
2.       Granting the building to the investor free of charge for three years.
3.       Contributing to subsidizing salaries of the employees by (50%) of the minimum wage for a period of (12) months.
4.       Contributing to the payment of transportation allowance for employees at the rate of (25) dinars for a period of (12) months.
5.       Contributing to the payment of social security allowance for workers at a rate of (25) dinars for a period of (12) months.
6.       Providing the infrastructure for the projects of the productive branches of water, electricity and roads, if necessary.

Incentives and benefits offered to investors through the Investment Authority
Income Tax: The adoption of income tax for industrial activities within the operating initiatives (new projects and productive branches) at a rate of (5%), and if it is subject to a lower rate by virtue of the income tax reduction system in the less developed regions, the lower rate shall be applied to it.

Customs duties, fees and other taxes:
Exemption of materials, equipment, machinery, fixtures, supplies, spare parts, production inputs, production requirements, and imported building materials involved in building, establishing, equipping and furnishing these projects from customs duties and other fees and taxes, except for export duties, service charges and due wages

General tax:
The general tax on materials, equipment, supplies, spare parts, production inputs, production requirements and construction materials and imported building materials involved in building, establishing, equipping and furnishing of these projects or that are purchased from the local market shall be reduced at a rate of (0%), with the exception of vehicles, tobacco and its products, alcoholic beverages, intoxicants and beer.

Sales tax:
Forklifts and vehicles intended for transporting ten persons or more, including the driver, for use in transporting workers for these projects to and from work sites are exempted from sales tax.
The products of new, independent productive projects that have no origin in the Hashemite Kingdom of Jordan, when offered for consumption in the local market, are treated as products of developmental areas and according to the nature of origin.