Latest NewsNEWSGulf

These Zones to be exempted from VAT

The federal Tax authority has announced 20 tax zones that will be exempt from recently implemented five percent VAT thus bringing a lot of relief to those companies working in this area.

An unofficial translation of the cabinet decision lists 20 free zones across the country as designated free zones under special treatment under VAT law. The Cabinet decision is effective from January 1, 2018.

https://www.eastcoastdaily.in/2018/01/10/benami-transactions-might-land-trouble-taxman-warnings/

“The designated zones are special zones for VAT purposes, which are generally considered outside of the UAE in terms of value-added taxation. While VAT applies throughout the UAE, in the designated zones VAT generally does not apply. Only fenced free zones with special controls on goods and services going in and out could benefit from this status. As expected, important free zones such as Jafza, Dafza and Kizad are on the list,” said Thomas Vanhee, founding partner, Aurifer Middle East Tax.

The free Zones as per the authority are listed below

Dubai: Jebel Ali Free Zone (North-South); Dubai Cars and Automotive Zone (Ducamz); Dubai Textile City; Free Zone Area in Al Quoz; Free Zone Area in Al Qusais; Dubai Aviation City; and Dubai Airport Free Zone

Abu Dhabi: Free Trade Zone of Khalifa Port; Abu Dhabi Airport Free Zone; and Khalifa Industrial Zone

Ajman: Ajman Free Zone

Sharjah: Hamriyah Free Zone; Sharjah Airport International Free Zone

Umm Al Quwain: Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port; Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road

Ras Al Khaimah: RAK Free Trade Zone; RAK Maritime City Free Zone; RAK Airport Free Zone

Fujairah: Fujairah Free Zone; Fujairah Oil Industry Zone (FOIZ)

shortlink

Post Your Comments


Back to top button