A Free Zone for corporate tax purposes is a specifically designated geographic area within the UAE that enjoys preferential tax treatment. These zones are determined by Cabinet Decisions based on recommendations from the Minister.
For VAT purposes, Designated Zones, under Federal Decree-Law No. 8 of 2017, are considered Free Zones. Businesses should consult their Free Zone Authority to confirm their Free Zone status for Corporate Tax purposes.
To benefit from the 0% Corporate Tax rate, a Free Zone Person must meet several key conditions:
Failure to meet these conditions could result in the loss of Qualifying Free Zone Person status, resulting in the imposition of the standard 9% Corporate Tax