Who?

1/ Mainland LLC local companies

2/ Free Zone companies. We are awaiting the Cabinet Decision, as these companies being very important for the Emirates and their activities mainly oriented towards international and export, they may not be taxed. The expected clarification concerns the share of income that free zones generate on the local market, and whether this would call into question the income generated for export.

3 / And the RAKICC companies? We are waiting for clarifications on this type of company if they have to register.

How is the tax calculated?

The tax is 9%, on profits over AED 375,000 (approx. USD 100,000). Below this profit threshold, the tax is 0%.