Corporate Tax Guide on Free Zone Persons

The Free Zones in the UAE have been an integral part to promote growth of business and development in the UAE, especially in terms of attracting Foreign Investments in the UAE. Under the UAE Corporate Tax Law, there is no blanket exemption from taxes to all Free Zone entities, however, there are certain conditions required to be satisfied by an entity in Free Zone to avail the beneficial rate of tax of 0%.   

The businesses in Free Zone were grappling to understand the applicability of the provisions pertaining to Free Zone relief under the UAE Corporate Tax Law with the limited clarification that was available under the UAE Corporate Tax Law and the Ministerial and Cabinet decisions applicable for Free Zones.

The UAE Federal Tax Authority has recently released a detailed Corporate Tax Guide on Free Zones Persons which has provided clarity on various technical aspect for entities conducting business in Free Zone. In this regard, we are pleased to share our Tax Alert on the aforesaid Corporate Tax Guide on Free Zones Persons summarizing the key aspects and clarifications provided under the guide.

It is pertinent for businesses operating in Free Zones to review and revisit their existing structure and business activities in light of the detailed guide released and understand the implications of the guide on their business, if any.

If you require any assistance in analysing the implications of the guide on your business or require any further clarification, please feel free to contact us, we will be happy to assist you!

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