What is Qualifying Income for Free Zone Persons?

The 0% Corporate Tax rate applies to a Free Zone Person’s Qualifying Income, which typically includes:

  • Transactions with other Free Zone Persons
  • Qualifying Activities such as manufacturing, trading, or logistics
  • Income from Qualifying Intellectual Property
  • Income derived from holding and managing shares or securities for investment purposes.

Income from non-qualifying activities such as those related to Immovable Property, Permanent Establishments, or specific Excluded Activities is subject to the standard 9% Corporate Tax.

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