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6.1 Fair Tax Regime
6.2 Professional Services
6.3 Capital Markets
In-Country Assessment Information

6. Appropriate Regulation

Goal – A comprehensive regulatory regime that is transparent, efficient, simple in its implementation and that leads to accurate reporting of property values and prudent protection from market risks

  

6.1 Fair Tax Regime

Core Question: Do market participants feel the overall tax rate is fair and participate in formal transactions? Strong – business tax rates are low relative to the world and its region.

Transfer Tax

6.1.1   What is the total property transfer tax including all duties and payments? 7.5% – Weak

Overall Tax

6.1.2   What is the overall tax rate on entrepreneurs(as a percentage of profits)? Ranking – 35th out of 183, Very Strong – no change in trend

Source: Doing Business 2011 – Paying Taxes & Registering Property, World Bank
http://www.doingbusiness.org/data/exploreeconomies/Jordan

6.1.3 Divestment

Survey Question

SQ 24  What is the tax on profits for foreign investors when divesting property? Very strong

Source: http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl
http://www.state.gov/e/eb/rls/othr/ics/2013/204667.htm

 

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6.2 Professional Services

Core Question:  Are the professional services necessary for efficient and transparent property markets available and appropriately regulated and supervised? Unknown

6.2.1 Asset Valuers

Survey Questions

SQ 25  Are property valuers licensed and/or certified by the government?  Unknown

SQ 26   How effective are mechanisms in place to discipline valuers who engage in misconduct? Unknown

6.2.2 Brokers & Agents

Survey Questions

SQ 27  Are real estate brokers and agents licensed and/or certified by the government? NO- There is no specific law in Jordan regulating the work of unlicensed real estate agencies. There are a lot of unlicensed agents out there.

SQ 28  How effective are mechanisms in place to discipline brokers or agents who engage in misconduct?  Unknown

6.2.3 Mortgage Professionals

Survey Questions

SQ 29  Are mortgage professionals licensed and/or certified by the government? Unknown

SQ 30  How effective are mechanisms in place to discipline mortgage professionals who engage in misconduct? Unknown.

 

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6.3 Capital Markets

Core Question: Are capital markets well-regulated and diversified enough to provide financial resources to private-sector entrepreneurs and innovators? Yes – Strong.

Capital Flows

6.3.1  How restricted is the flow of capital into and out of the country? Strong – score 4.55 out of 7, ranking 72nd out of 142

Source: Index of Economic Freedom 2014– Heritage Foundation
http://www.heritage.org/index/Country/Jordan

Security Exchanges

6.3.2  Is the regulation of securities exchanges transparent, effective and free of influence from government and industry? Yes – Strong, Ranking 58th out of 142; Score 4.36 out of 7

Source: The Global Competitiveness Report 2011-2012, World Economic Forum
http://wwww.weforum.org/issues/global-competitiveness

Securitization

6.3.3   What is the depth of asset-backed securities, mortgage-backed securities, high-yield bonds and highly leveraged loans? Very Strong – 2nd out of 57 countries

Source: Financial Development Report, World Economic Forum
http://www3.weforum.org/docs/WEF_FinancialDevelopmentReport_2010.pdf

 

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In-Country Assessment

Taxation 

FQ 23 What is the level of taxation for small businesses? Are any of those taxes an excessive burden on small businesses? Are any tax discounts provided for small businesses? Not available yet

Professional Services

FQ 24 What is the experience of small businesses in dealing with professional property market service providers such as real estate agents, brokers and valuers? Not available yet