Any person who wants to understand the provisions related to Free Zone Persons under the UAE Corporate Tax Law.
The Corporate Tax Law allows a Qualifying Free Zone Person to benefit from a 0% Corporate Tax rate on their Qualifying Income. The other income, which is not Qualifying Income, is subject to Corporate Tax at the standard rate of 9%.
A Qualifying Free Zone Person is not eligible to benefit from the 0% Corporate Tax rate applicable on Taxable Income up to the AED 375,000 threshold and is subject to the rate of 9% on its entire Taxable Income that is not Qualifying Income.
A Free Zone Person is a juridical person that is incorporated, established, or otherwise registered in a Free Zone. This also includes the relevant Free Zone authorities and other Government Controlled Entities that are established in a Free Zone.
A non-resident juridical person’s registered branch in a Free Zone will be considered a Free Zone Person (with the non-resident parent being consider...