The taxation of various income and activities of a Qualifying Free Zone Persons, at 0% is as under : –

• Taxable income from Qualifying Activities other than income derived from an Excluded Activity.
• Taxable income from transactions with other Free Zone Persons other than income derived from an Excluded Activity.

Income of a Qualifying Free Zone Person from  following is taxable at 9% : –

• Income from a UAE Mainland Permanent Establishment
• Income from a Permanent establishment in a foreign country

Income of  Permanent Establishment of a foreign company in Free Zone

Where such a permanent establishment suffers any tax in UAE, the concern foreign company can claim double taxation relief of such tax, based on the provisions of the tax treaty between UAE and their country of residence. In case you would like our assistance to evaluate this aspect Contact us

Income from Immovable Property in a Free Zone is taxed at 9% in following cases ; –

• Income of a Qualifying Free Zone Person from leasing of a Commercial Property to a  non-Free Zone Persons ;

Income derived from residential units, hotels and other Immovable Property that is not Commercial Property  from any person.