The UAE Cabinet has issued a Resolution recognising the Ras Al Khaimah International Corporate Centre (RAK ICC) as a Qualifying Free Zone for UAE Corporate Tax purposes, with retrospective effect from 1 June 2023.
The recognition is a significant milestone for RAK ICC and the entities incorporated or registered within its jurisdiction. It confirms RAK ICC’s status as a Qualifying Free Zone within the UAE Corporate Tax framework and enables eligible RAK ICC entities to be considered for the Corporate Tax benefits available to Qualifying Free Zone Persons.
Recognition of RAK ICC as a Qualifying Free Zone does not, by itself, grant every RAK ICC entity an automatic entitlement to the 0% Corporate Tax rate. Each entity must independently satisfy the conditions for a Qualifying Free Zone Person (QFZP) under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, as amended, together with the applicable statutory requirements, including the relevant provisions of the Corporate Tax legislation and implementing decisions.
The retrospective effective date of 1 June 2023 may be relevant to the Corporate Tax position of existing RAK ICC entities. Such entities should review whether the Resolution affects any previous or ongoing registrations, returns, tax positions, supporting records or other compliance obligations and should obtain professional tax advice based on their particular circumstances.
The Resolution provides welcome certainty by formally recognising RAK ICC as a Qualifying Free Zone under the UAE Corporate Tax regime. RAK ICC entities should now assess their eligibility for QFZP status and the extent to which the available Corporate Tax benefits may apply to them.
or Vida Grace Serrano vida@alsuwaidi.ae.