UAE Federal Tax Authority Issues Clarification on Free Zones and Designated Zones for Tax Purposes

The UAE Federal Tax Authority (FTA) has issued Tax Public Clarification - TAXP010, which clarifies the determination of whether a business is located in a Free Zone or a Designated Zone for corporate tax purposes, excise tax purposes, or VAT purposes. The issue and summary are as follows. See the full public clarification for a detailed analysis.

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Issue

In certain instances, Businesses may be established in a Free Zone in the UAE. Businesses operating in a Free Zone may be subject to …