FTA Conducts Workshop In Ras Al Khaimah To Educate Free Zone Persons On Corporate Tax Regulations

The Federal Tax Authority (FTA) recently conducted an informative workshop in Ras Al Khaimah. This event focused on Corporate Tax for Free Zone Persons, marking a significant step in the FTA's ongoing Corporate Tax Awareness Campaign. The initiative aims to educate participants about the UAE’s Corporate Tax system and the tax responsibilities of Free Zone Persons.

During the session, attended by over 200 stakeholders, the FTA highlighted that Qualifying Free Zone Persons can enjoy a 0% Corporate Tax rate on their Qualifying Income. Despite this benefit, all Free Zone Persons must register for Corporate Tax, irrespective of their qualifying status. The 0% rate is applicable only to income meeting specific criteria set by the FTA.

To aid understanding, the FTA has made available a detailed Corporate Tax Guide for Free Zone Persons on its website. This guide includes comprehensive information and practical examples. It aims to clarify Corporate Tax legislation for these individuals. Additionally, registration for Corporate Tax is mandatory for all Free Zone Persons.

The FTA emphasised that income not classified as "Qualifying Income" will incur a standard 9% tax rate. The workshop provided an in-depth explanation of the conditions required to qualify for the 0% tax rate and what constitutes "Qualifying Income." Participants also learned about Qualifying Activities and Excluded Activities under this regime.

The FTA clarified that Resident juridical persons with licences issued in October or November must register by 30 November 2024. Registration is available around the clock via the "EmaraTax" platform, which simplifies the process significantly. Certified Tax Agents listed on the FTA’s website can assist with registration.

In addition to online resources, registration applications can be submitted through government service centres across the UAE. This expansion of submission channels ensures accessibility for all taxable persons needing to complete their registration efficiently.

Role of Free Zones in Economic Growth

The FTA reiterated its dedication to supporting free zones as they play a crucial role in economic diversification and innovation within the UAE. By organising regular workshops, they aim to equip Free Zone Persons with necessary knowledge and resources to comply with tax laws effectively.

Free zones are integral to the UAE’s strategy for economic diversification. The FTA continues launching initiatives to support business growth within these zones, enhancing their contribution to national economic development.

This workshop represents part of broader efforts by the FTA to ensure businesses understand their tax obligations fully. By providing clear guidance and resources, they aim to promote sustainable economic growth while diversifying government revenue sources effectively.

With inputs from WAM