Ras Al Khaimah: The Federal Tax Authority (FTA) successfully hosted today an awareness workshop on Corporate Tax for Free Zone Persons in Ras Al Khaimah, which marked a key milestone in the second phase of the FTA's nationwide Corporate Tax Awareness Campaign. The campaign is aimed at providing valuable insights into the UAE’s Corporate Tax regime and tax obligations of Free Zone Persons subject to Corporate Tax.

In a press statement, the FTA highlighted its commitment to organizing these workshops regularly which serve as a key platform for equipping Free Zone Persons with the knowledge and resources, they need to comply with tax laws and legislations while promoting the effective implementation of the corporate tax regime in the UAE.The FTA emphasised the critical role of free zones in supporting the sustainable economic growth trajectory and innovation in the UAE, and reaffirmed its commitment to supporting Free Zone Persons in contributing to the diversification of government revenue sources as well as promoting sustainable economic growth.

Given the role of free zones as a key pillar in the UAE’s Economic diversification strategy, the FTA continues to launch awareness initiatives and programs aimed at ensuring the continued growth of business activities in free zones and enhancing their contribution to the national economy.

As part of its efforts to clarify the Corporate Tax legislation for Free Zone Persons, the FTA has provided a dedicated Corporate Tax Guide for Free Zone Persons on its website, with comprehensive information and practical examples to enhance understanding.

During the workshop, which was held with the participation of more than 200 stakeholders, the FTA underscored that Qualifying Free Zone Persons can benefit from a 0% Corporate Tax rate on their Qualifying Income under the UAE Corporate Tax regime. However, all Free Zone Persons must register for Corporate Tax, regardless of whether they are a Qualifying Free Zone Person or not. The 0% rate applies specifically to Qualifying Income, which has specific conditions that need to be met as outlined by the FTA. Income that does not meet the "Qualifying Income" conditions will be taxed at the standard Corporate Tax rate of 9%.

The workshop included a comprehensive explanation of the Corporate Tax regime for Free Zone Persons, the conditions for qualifying for the 0% tax rate, and the requirements for income to be classified as "Qualifying Income". The FTA representatives discussed Qualifying Activities, Excluded Activities, guidance on calculating tax liabilities for Free Zone Persons, and the procedures for fulfilling their Corporate Tax obligations, including registration and filing their Corporate Tax Returns.

The FTA also clarified that Resident juridical persons with Licences issued during the months of October and November, regardless of the issuance year, must submit their registration applications by 30 November 2024.

Corporate Tax registration is accessible 24/7 through the "EmaraTax" platform, allowing users to complete the process in just a few minutes. Taxable Persons can also get help from certified Tax Agents for Corporate Tax on the FTA’s website. Additionally, the FTA has expanded submission channels for registration applications through government service centres throughout the UAE.

About FTA:

The Federal Tax Authority was established by Federal Decree-Law No. (13) of 2016 to help diversify the national economy and increase non-oil revenues in the UAE through the management and collection of federal taxes based on international best practices and standards, as well as to provide all means of support to enable taxpayers to comply with the tax laws and procedures. Since its inception in 2017, the FTA has been committed to cooperate with the competent authorities to establish a comprehensive and balanced system to make the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance, with simple procedures based on the highest standards of transparency and accuracy – beginning from registration, to the submission of tax returns, to the payment of due taxes through the Authority’s website: www.tax.gov.ae