Impact of Corporate Tax on Free zones

The UAE plans to keep its promise to businesses registered in Free Zones that do not operate a business with the mainland that they will be getting the benefit of corporate tax incentives depending on the respective Free Zone regulations. An yearly CIT return is required to be submitted for all free zones.

Corporate Tax For Free Zone Companies in UAE with qualifying income will be 0%. Corporate Tax For Free Zone Companies with non qualifying income will be 9%. As per the law, businesses will be liable for corporate tax in UAE from the beginning of their financial year, starting on or after June 1, 2023.

Impact of Corporate Tax on UAE businesses

With the introduction of corporate tax in the UAE, a major change is expected in the tax and compliance costs of most UAE businesses. Entities must be compliant with the new tax regime and this requires an accurate identification of tax implications and alterations to corporate structure, operating model(s), finance/tax operations, reporting systems, legal agreements and transfer pricing policies if required.

Our designated tax team at Xact Auditing will provide the required assistance and clear your queries on corporate tax. Corporate Tax Registration is now open by the Federal Tax Authority (FTA). If you are looking for Corporate Tax Registration services, feel free to contact us.