Tax blog

14 QualifyingActivities in UAE Free Zones forCorporate Tax purposes

A Qualifying Free Zone Person can benefit fromthe 0% Corporate Tax rate if it derives QualifyingIncome from transactions in respect of thefollowing Qualifying Activities (even if suchservices or goods are sold to Non-Free ZonePersons):

 Manufacturing of goods or materials
 Processing of goods or materials
 Trading of Qualifying Commodities
 Holding of shares and other securities forinvestment purposes
 Ownership, management and operation of Ships
 Reinsurance services
 Fund management services
 Wealth and investment management services
 Headquarter services to Related Parties
 Treasury and financing services to RelatedParties
 Financing and leasing of Aircraft
 Distribution of goods or materials in or from aDesignated Zone
 Logistics services

Qualifying Activities also include ancillaryactivities, which are activities that are necessary forthe performance of the main Qualifying Activity orthat make a minor contribution to the mainQualifying Activity and are so closely related to themain Qualifying Activity that it should not beregarded as a separate activity.

If you wish to avail 0% Corporate Tax rate for your businesses, then fill free to contact us.