TAX ALERT
Free Zone or Designated Zone? The answer depends on the tax
Many businesses assume that Free Zones and Designated Zones have the same meaning across all UAE tax laws, but this is not the case. The FTA's Public Clarification TAXP010 brings together the definitions used under Corporate Tax, VAT and Excise Tax legislation, clarifying where they align and where they differ. This article explores the key takeaways and the practical implications for businesses operating in UAE free zones, including the need to evaluate their status independently under each tax regime.
