More freezone activities are now exempt from corporate tax

The Finance Ministry has broadened the scope of activities eligible for exemption from corporate tax in freezones to include industrial chemicals, environmental commodities, and by-products , state news agency Wam reports. The requirement that commodities be traded in raw form has been removed, though they must still carry a quoted price on a recognized exchange or price reporting agency.

REFRESHER- Under the Federal Tax Authority’s Qualifying Freezone Person Regime, eligible firms can claim a 0% corporate tax rate on qualifying income from freezone operations, versus the standard 9% rate.

ALSO- Treasury and financing services may now include self-investment for related parties or the taxpayer’s own account, the ministry said. Plus: Distribution from designated zones to public benefit entities will not affect the de minimis threshold.