Introduction

Umm Al Quwain Free Trade Zone (UAQFTZ) is a free zone in the United Arab Emirates that offers a number of benefits to businesses, including 100% foreign ownership, no income tax, and low import and export duties. UAQFTZ is also home to a variety of industries, including technology, media and entertainment, education, healthcare, and logistics.

There are two main types of taxes that businesses need to be aware of in UAQFTZ:

  1. Free zone taxes: These are taxes that are levied by the free zone authority.
  2. UAE federal taxes: These are taxes that are levied by the federal government of the UAE.

Free zone taxes

The following are the different types of free zone taxes that businesses need to pay in UAQFTZ:

  • Registration fee: This is a one-time fee that is paid when you register your business in UAQFTZ. The registration fee varies depending on the type of business you are registering.
  • License fee: This is an annual fee that is paid to renew your business license in UAQFTZ. The license fee varies depending on the type of business you have.
  • Visa fee: This is a fee that is paid to obtain a visa for yourself and your employees. The visa fee varies depending on the nationality of the visa applicant.
  • Office rent: This is a fee that is paid to rent office space in UAQFTZ. The office rent varies depending on the size and location of the office.
  • Other fees: There may be other fees that apply, such as fees for specific activities or services.

UAE federal taxes

The following are the different types of federal taxes that businesses need to be aware of in the UAE:

  • Value Added Tax (VAT): VAT is a consumption tax that is levied on the supply of goods and services within the UAE. The standard VAT rate is 5%.
  • Excise Tax: Excise Tax is a consumption tax that is levied on certain goods, such as tobacco, alcohol, and carbonated drinks. The excise tax rate varies depending on the good.
  • Corporate Tax: Corporate Tax is a tax that is levied on the profits of companies. The corporate tax rate is 9%.

However, businesses in UAQFTZ are exempt from corporate tax for 50 years from the date of their establishment, provided that they meet certain conditions. These conditions include:

  • The company must be registered in UAQFTZ
  • The company must conduct all of its business activities within UAQFTZ
  • The company must not generate any income from outside of UAQFTZ
tax documents on the table

Conclusion

The tax system in Umm Al Quwain Free Trade Zone is designed to attract and support businesses. By offering a number of tax exemptions and benefits, UAQFTZ has created a business-friendly environment that has helped to attract businesses from all over the world.

Recommendation: BizDaddy

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If you are serious about setting up a business in UAQFTZ, I highly recommend contacting BizDaddy. BizDaddy can help you make the process as smooth and stress-free as possible.