The Federal Tax Authority (FTA) has published the tax guide on free zone persons. The guide provides clarification on the following aspects:
- the conditions required to be met for a free zone person to be a qualifying free zone person and to benefit from the 0% Corporate tax rate; and
- the activities that are considered qualifying activities and excluded activities for a qualifying free zone person.
The guide covers the following areas:
- the free zone corporate tax rules;
- the requirements to be considered as a qualifying free zone person;
- the rules for calculating the corporate tax for a free zone person;
- the rules for maintaining adequate substance;
- the rules related to foreign permanent establishment or domestic permanent establishment;
- the rules related to immovable property;
- the rules related to intellectual property;
- the qualifying activities;
- the excluded activities; and
- the compliance rules.
The FTA published the guide to Free Zones for Persons on 17 May 2024.
Source: IBFD Tax Research Platform News