Analytics and brochures

The distribution of materials from a Designated Zone to a customer who processes these materials and sells the product of processing qualifies for the 0% Corporate Tax rate in the UAE. Manufacturing is defined as an activity separate from Processing. In this case study, we examined the difference between processing and manufacturing in the scenario where raw materials are sold to a factory to manufacture a ready-to-use product.

This case study addresses several major issues related to the application of a 0% VAT rate to indirect exports in the UAE. First, it considers the resale of goods that were already sold for subsequent export within the UAE. Second, it explores the interplay between the timing of customs clearance and resale. Third, it examines VAT concequenses for cases where goods have been transferred to a Designated Zone prior to their sale and resale. Finally, it discusses registration issues for foreign customers in cases of the aforementioned resale. Given the scarcity of clarifications from the FTA, we are attempting to bridge the gap with insights provided by the Omani, Saudi, and Bahraini tax authorities regarding similar regulations. Read more in the article of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

The FTA’s Free Zone Persons Guide.
HQ services are Qualifying Activity and other intragroup services are not. How to distinguish between them? Read more in the publication of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

The FTA’s Free Zone Persons Guide.
We delve into differentiating between Ancillary and Incidental Activities. Read more in the publication of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

The FTA’s Free Zone Persons Guide.
In the Free Zone Persons Guide, The FTA instructs ‘all taxpayers’ to ‘check with their respective Free Zone Authority to confirm if they operate in a Free Zone or Designated Zone for Corporate Tax purposes’. Read more in the publication of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.

The FTA’s Free Zone Persons Guide.
Its definition was introduced by Ministerial Decision No. 139 of June 1, 2023. On October 27, the MoF replaced this decision with Decision No. 265. The latter does not include the definition of a Designated Zone (DZ). Read more in the publication of Andrey Nikonov, Senior Partner, and Maria Nikonova, Partner.