UAE corporate tax and free zones: what to check
Understand why a free zone licence does not automatically mean zero corporate tax, and what to prepare for a review.
A free zone licence is not a tax exemption
Qualifying Free Zone Persons can benefit from 0% corporate tax on qualifying income, subject to the applicable conditions. A free zone licence alone does not establish that status. Do not choose a company structure solely on a promised tax rate.
Prepare your business facts
For a useful review, describe your licensed activities, where customers and suppliers are located, the types of transactions you make, and your office and staffing arrangements. Bring your licence and available financial records.
Different income streams and transactions can receive different treatment. Ask a qualified tax adviser to assess your facts against current Federal Tax Authority guidance, including registration, filing and record-keeping requirements.
Questions before selecting a package
Ask what is included in the service: company formation, tax registration, bookkeeping, return preparation or a separate tax assessment. These are different tasks and should be identified in the written scope.
Expedia can discuss company-formation and tax-registration enquiries. A quotation should identify the work requested; it should not promise a tax outcome before reviewing the business.