Government Decides to Standardize Exemptions and Incentives for Green Hydrogen Projects

Al-Taj News – The Cabinet, during its session held in Ma’an Governorate today, Sunday, chaired by Dr. Jaafar Hassan, decided to approve the standardization of incentives, benefits, and exemptions granted to green hydrogen projects established both inside and outside the Aqaba Special Economic Zone.

The incentives include reducing income tax to 5%, in addition to a 1% national contribution, and exempting all equipment and spare parts necessary for establishing the project, as part of its fixed assets, from customs duties, other taxes due on them, import fees, and other charges.

The incentives also include exempting the project from general sales tax and the sales tax stipulated in Article 37 of the Aqaba Special Economic Zone Law No. 32 of 2000, as well as any other taxes, and extending tax exemptions to services, whether local or international, in addition to goods and materials necessary for the project.

They also include granting the project company the right to benefit from any additional exemptions from fees and taxes that may subsequently be granted to industrial projects, in addition to exemption from withholding tax on imported services.

The incentives provide a grace period for the commencement of collecting land lease payments for lands owned by the Treasury and the Aqaba Special Economic Zone Authority until the project begins operations, for a maximum period of five years.