The Federal Tax Authority (FTA) issues a guide on Corporate Tax for Free Zone Persons, detailing eligibility for a 0% tax rate on Qualifying Income, conditions, activities, calculation methods, substance requirements, and treatment of Permanent Establishments and income types. Operating outside Free Zones incurs a 9% tax rate.
The FTA highlighted in its guide that Free Zones are an integral part of the UAE economy and play a critical role in driving economic growth and transformation both in the UAE and internationally. It added that Free Zones offer Businesses various benefits such as relaxed foreign ownership restrictions, streamlined administrative procedures, modern and sophisticated infrastructure, developed business communities and the availability of additional legal entity forms and commercial activities.
In a press statement, the FTA called on all Free Zone Persons to read the guide in its entirety for a complete understanding of the definitions and interactions of the different rules. The FTA noted that the Corporate Tax implementing decisions as well as guides including the new guide on Free Zone Persons are available on the FTA’s website.
News Source: Emirates News Agency
