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UAE Free Zone Taxation: Myths vs. Facts | Business Setup UAE
Taxation in UAE Free Zones: Myths vs. Facts

17 Jul, 2025

By CA

Taxation in UAE Free Zones: Myths vs. Facts

๐˜“๐˜ฆ๐˜ต ๐˜ถ๐˜ด ๐˜ฃ๐˜ณ๐˜ฆ๐˜ข๐˜ฌ ๐˜ด๐˜ฐ๐˜ฎ๐˜ฆ ๐˜ฎ๐˜บ๐˜ต๐˜ฉ๐˜ด ๐˜ฐ๐˜ฏ ๐˜ต๐˜ข๐˜น๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฐ๐˜ฏ ๐˜Š๐˜ฐ๐˜ฎ๐˜ฑ๐˜ข๐˜ฏ๐˜ช๐˜ฆ๐˜ด ๐˜ช๐˜ฏ ๐˜๐˜ณ๐˜ฆ๐˜ฆ๐˜ป๐˜ฐ๐˜ฏ๐˜ฆ๐˜ด

๐Œ๐ฒ๐ญ๐ก 1: Free Zones Are Tax-Free Forever

๐…๐š๐œ๐ญ๐ฌ : Tax holidays can last up to 50 years, but arenโ€™t eternal. New corporate tax rules may apply if you do business outside the zone.


๐Œ๐ฒ๐ญ๐ก 2: No Compliance Needed

๐…๐š๐œ๐ญ๐ฌ : Free zone companies must still register for VAT if they hit the revenue threshold and comply with other tax regulations.


๐Œ๐ฒ๐ญ๐ก 3: No Corporate Tax on All Activities

๐…๐š๐œ๐ญ๐ฌ : Some business activities, especially on the mainland, could be subject to corporate tax.


๐Œ๐ฒ๐ญ๐ก 4: No ESR Compliance

๐…๐š๐œ๐ญ๐ฌ : Companies doing certain activities must comply with Economic Substance Regulations (ESR).


๐“๐š๐ค๐ž๐š๐ฐ๐š๐ฒ: Free zones have perks but come with rules. Stay informed to keep your tax game strong! ๐Ÿ’ชโœจ


To know more, you can directly message us on LinkedIn or write to us at ๐’—๐’Š๐’…๐’‰๐’–@๐’—๐’Š๐’…๐’‰๐’–๐’…๐’–๐’ˆ๐’ˆ๐’‚๐’๐’‚๐’๐’…๐’„๐’.๐’„๐’๐’Ž 

 

#freezones #Taxfree #UAE #compliance #Dubai #mainland #taxation #compliance #Corporatetax #ESR #company #VAT #CAVidhuDuggal #VDC #VidhuDuggalandCompany


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