❖ Introduction Free Zone
• A designated and defined geographic area within the State that is specified in a decision issued by the Cabinet at the suggestion of the Minister (e.g. JAFZA, SAIF Zone, RAKEZ etc.)
• Free Zone Person A juridical person incorporated, established or otherwise registered in a Free Zone, including a branch of a Nonresident Person registered in a Free Zone
❖ CT rate for Free Zone
• Companies and Branches registered in a Free Zone are considered Taxable persons and CT of 9 % will be applicable. If a Free Zone entity meets the condition to be considered a Qualifying Free Zone (“QFZP”), then a Free Zone entity should be eligible for 0% CT on its Qualifying Income and Non Qualifying Income would be charged at 9% CT.
❖ Qualifying free zone criteria
• In order to qualify for the 0% CT rate, QFZP must meet all of the following conditions:
a) Maintains adequate substance in the State.
b) Derives Qualifying Income as specified in a decision issued by the Cabinet at the suggestion of the Minister.
c) Has not elected to be subject to Corporate Tax under Article 19 of this Decree-Law.
d) Complies with Articles 34 and 55 of this Decree-Law.
e) Meets any other conditions as may be prescribed by the Minister