In May 2024, the UAE Federal Tax Authority (FTA) published an updated guide for companies conducting business in UAE free zones.
The new document, numbering a comprehensive 134 pages, is designed to provide enhanced guidance on the application of UAE Corporate Tax Law to Free Zones and Free Zone Persons.
It provides an overview of:
- the conditions required to be met for a Free Zone Person to be a Qualifying Free Zone Person (“QZFP”) and benefit from the 0% Corporate Tax rate, and
- the activities that are considered Qualifying Activities and Excluded Activities for a QFZP
Other topics covered include calculating corporate tax for a Free Zone person, maintaining adequate substance, treatment of immovable and intellectual property, as well as a detailed overview of qualifying & excluded activities.
We encourage all our clients with presence and interests in UAE free zones, to study this document in detail. Our dedicated Corporate Tax & Compliance teams are on hand to assist you, and underline key implications for your unique business and circumstances.
For more information, please visit:
https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.guides.references.aspx