Revision in Corporate Tax laws for Free Zone. Companies will alter key business Decisions and Corporate Strategies. Are you Corporate Tax ready? On November 3rd, 2023, the Ministry of Finance revised the laws governing tax for the Free zone companies, for the purpose of computation of Corporate Tax.
REPEALED
- Cabinet Decision 55 of 2023
- Ministerial Decision 139 of 2023
REPLACED WITH
- Cabinet Decision 100 of 2023
- Ministerial Decision 265 of 2023
Triple Test For freezone entities
- Do you qualify for tax exemption as a Freezone entity?
- Does your Sources of Income qualify for Tax exemption?
- Does your Business Activities qualify for Tax Exemption?
To continue to avail Freezone Benefits, the company must follow strict compliance and not do business with Mainland Companies exceeding 5%of revenue or AED 5 Mn, whichever is lower.
Export income will be taxable for all freezone companies as worldwide income will become taxable income
Income from ownership and exploitation of Intellectual Property will be allowed as exempt from Corporate Tax
Companies Dealing in Commodities trading, can operate from any registered Free zone instead of operating out of designated zones