The recently launched Corporate Tax Free Zone public consultation’s deadline for feedback and comments has been extended, according to the UAE’s Ministry of Finance.
August 9 has been set as the new deadline for firms operating in free zones to submit their ideas.
As part of the Corporate Tax Free Zone legislation, the Ministry of Finance had started an online public survey. Feedback from stakeholders and the business community is encouraged as part of the effort.
The Ministry of Finance has extended the deadline for feedback and comments on the recently launched Corporate Tax Free Zone public consultation on its website until August 9th. pic.twitter.com/6NBrqOmwuP
— وزارة المالية | الإمارات (@MOFUAE) August 1, 2023
The consultation period was to run from July 19 to August 2 which has now been extended by a week.
Corporate tax public consultation initiative
“This initiative reflects the significant contribution of free zones to the local economy, and their integral role in stimulating growth and economic transformation locally and internationally,” the ministry stated in its launch statement.
“The digital public consultation also reflects the ministry’s belief in the importance of consulting with the business community and relevant stakeholders, as part of its priorities to contribute to the achievement of the UAE’s strategic goals.”
The MoF had stated that responses will remain confidential and will not be published.
The Ministry of Finance stated that its goal in holding this consultation is to get input from businesses operating in free zones and make sure that their operations are in line with the permitted and prohibited business activities.
In January 2022, the Ministry of Finance announced that a federal corporate tax would be imposed on business profits beginning with the fiscal year beginning on or after 1 June 2023.
Qualifying free zone entities may benefit from a 0% tax rate under the new Corporate Tax regime if they can be identified as engaging in qualifying activities. The Ministerial Decision No. (139) of 2023 contains information on the qualifying and prohibited activities.