A квалифицированное лицо свободной зоны may benefit from a 0% корпоративный налог rate on Qualifying Income if every statutory condition is met.
The conditions include:
If the company fails a qualifying condition, it can lose квалифицированное лицо свободной зоны status for the relevant Tax Period and the following four Tax Periods.
The Federal Tax Authority explains that adequate substance is assessed with reference to the company's:
A company without ОАЭ employees is not necessarily disqualified in every situation. Certain activities may be outsourced under the applicable conditions if the company maintains adequate supervision. Nevertheless, a minimal registered address and no meaningful ОАЭ вид деятельности may be difficult to reconcile with a substance-intensive business model.
The substance assessment should be completed before claiming Свободная зона корпоративный налог benefits.
The company's tax position and the shareholder's personal tax residence are separate questions.
A company incorporated in a ОАЭ свободная зона may be treated as a ОАЭ juridical person for корпоративный налог purposes. That does not automatically make its shareholder personally resident в ОАЭ.
Foreign tax laws may also examine where the company is effectively managed.
International основатели should obtain advice в ОАЭ and their country of residence.
Owning a свободная зона company does not automatically guarantee that either the company or shareholder will receive a ОАЭ Tax Residency Certificate.
The application depends on:
A shareholder seeking a personal Tax Residency Certificate normally needs to satisfy the relevant individual conditions independently of company ownership.
A ОАЭ-resident business generally must register when its taxable supplies and imports exceed AED 375,000 over the previous 12 months or are expected to exceed the threshold within the next 30 дней.
Voluntary registration may be available above AED 187,500, subject to the applicable conditions.
The company must consider:
A customer being located overseas does not automatically make every transaction zero-rated or outside the объем работ of НДС.
A zero-visa company should maintain proper accounting records from incorporation.
Records may include:
The FTA has emphasised that taxable persons must retain documents supporting their корпоративный налог returns and other submissions.
An audit may be required because of:
A квалифицированное лицо свободной зоны must prepare audited financial statements.
The lack of employees or visas does not remove the audit requirement where it otherwise applies.