List Of Designated Zones In The UAE
List Of Designated Zones In The UAE
Do you planning to look for business prospects in the designated free zones of the United Arab Emirates? For well-informed decision-making, it is essential to comprehend the VAT in these areas. You will learn all you need to know to get started with this guide, which will give you important information about the VAT regulations and benefits of establishing in these zones.
What are Designated Zones?
In order to give firms tax breaks, a Cabinet Decision designates a certain area as being outside the United Arab Emirates for Value Added Tax (VAT) purposes. A designated zone must fulfill a number of requirements:
• Gated Territories: To monitor the flow of people and products, designated zones need to be fenced and equipped with safety precautions and customs regulations.
• Internal Goods Processing Policy: Protocols must be in place for the zone’s goods processing, maintenance, and storage.
• Tax Compliance: The rules established by the Federal Tax Authority (FTA) must be followed by zone administrators.
Comprehending UAE Designated Zones' VAT Policies
VAT is a general consumption tax that was implemented on January 1, 2018, and it is imposed throughout the United Arab Emirates. Designated Zones, however, are handled differently:
- Under some circumstances, goods moved within and between designated zones are free from VAT.
- If appropriate controls and documentation are kept, goods imported or exported from Designated Zones to foreign countries are likewise exempt from VAT.
- The regular 5% VAT rate applies to transfers into a designated zone from the mainland or other free zones.
- Transfers from designated zones to the mainland or other free zones, on the other hand, are regarded as imports and are subject to VAT through the reverse charge process.
However, because services are more difficult to oversee and regulate, they are not exempt from these exemptions and are subject to 5% taxation regardless of where they are provided within the United Arab Emirates.
The Whole List of UAE Designated Free Zones
The following free zones are designated areas in the United Arab Emirates in accordance with Cabinet Decision No. 59.
Abu Dhabi:
- Free Trade Zone of Khalifa Port
- Abu Dhabi Airport Free Zone
- Khalifa Industrial Zone
- Al Ain International Airport Free Zone
- Al Butain International Airport Free Zone
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
- Dubai Airport Free Zone
- International Humanitarian City – Jebel Ali
Sharjah:
- Hamriyah Free Zone
- Sharjah Airport International Free Zone
Ajman:
- Ajman Free Zone
Umm Al Quwain:
- Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port
- Umm Al Quwain Free Trade Zone on Sheikh Mohamed 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)
Advantages of Establishing in UAE Designated Free Zones
Numerous benefits, like as tax breaks, reduced customs duties, and easier logistics, come with establishing your business in one of the United Arab Emirates’ designated free zones. These areas offer a favorable setting for expansion-focused companies looking to take advantage of the prime location and cutting-edge amenities.
IBR Group Accountants Can Help You Launch Your Free Zone Business!
Starting a business in one of the designated free zones in the United Arab Emirates? Simplify your procedure with IBR Group Accountants in a designated free zone, from conception to full operational competence.
Our knowledgeable advisers will help you with every stage of the procedure, from registering your firm and comprehending UAE VAT laws to securing the required government permissions.