Free zone in UAE offer various tax incentives and benefits to attract foreign
investment and promote economic growth. Here are four prominent free zones in the
UAE, along with their tax regimes and key features:
mandmauditing Location: Dubai
Tax Benefits:
Corporate Tax: No corporate tax for 50 years (subject to conditions).
Personal Income Tax: No personal income tax.
Import and Export Duty: No customs duties for goods and services.
VAT: 5% VAT applies, but many transactions within the free zone can be zero rated
or exempt.
Key Features:
Ideal for trading, commodities, and financial services.
Offers a range of licensing options: trade, service, and industrial.
100% foreign ownership and repatriation of profits and capital.
Jebel Ali Free Zone (JAFZA)
Location: Dubai
Tax Benefits:
Corporate Tax: No corporate tax for 50 years (renewable).
Personal Income Tax: No personal income tax.
Import and Export Duty: No customs duties.
VAT: Standard 5% VAT applies, but certain transactions may be exempt or zero
rated.
Key Features:
One of the largest free zones in the UAE, adjacent to the Jebel Ali Port.
Supports a wide range of industries, including manufacturing, trade, and logistics.
Allows 100% foreign ownership and full repatriation of profits and capital.
Abu Dhabi Global Market (ADGM)
Location: Abu Dhabi
Tax Benefits:
Corporate Tax: No corporate tax for 50 years (from the date of registration).
Personal Income Tax: No personal income tax.
Import and Export Duty: No customs duties.
VAT: Standard 5% VAT applies, but some financial services may be exempt.
Key Features:
Focuses on financial services, asset management, and fintech.
Independent legal jurisdiction with a legal system based on English common law.
Provides a robust regulatory framework for financial activities.
Sharjah Airport International Free Zone (SAIF Zone)
Location: Sharjah
Tax Benefits:
Corporate Tax: No corporate tax.
Personal Income Tax: No personal income tax.
Import and Export Duty: No customs duties.
VAT: Standard 5% VAT applies, with potential exemptions for certain goods and
services.
Key Features:
Proximity to Sharjah International Airport.
Suitable for various industries, including light manufacturing, trade, and services.
Offers 100% foreign ownership and full repatriation of profits and capital.
Conclusion
Free zones in the UAE provide significant tax advantages and operational benefits,
making them attractive destinations for international businesses. Each free zone has
its own set of regulations and incentives, so businesses should carefully consider
their specific needs and objectives when choosing a free zone.
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