QUALIFYING FREEZONE PERSON – CONDITIONS

Corporate Tax on Free zone Business- Qualifying & Non qualifying, (Cabinet Decision no. 55 & Ministerial Decision no. 139)

Corporate Tax on Free zone – Qualifying Activities (CD 55 & MD 139)

• Manufacturing  of Goods or materials (PCD: Fully fledged & Contract/ toll manufacturing)
• Processing  of Goods or materials
• Distribution of imported goods or materials in or from a Designated Zone to reseller

• Holding of shares and other securities
• Ownership, management and operation of Ships
• Reinsurance services
• Fund management services
• Wealth and investment management services
• Headquarter services to Related Parties
• Treasury and financing services to Related Parties
• Financing and leasing of Aircraft, including engines and rotable components
• Logistics services
• Ancillary activities to above

Corporate Tax on Free zone – Excluded Activities (CD 55 & MD 139)

• Transaction with Natural Person (except to Ownership or management of ship/ Fund management services/ Wealth & investment management/ Financing & leasing of aircraft)
• Banking activities
• Insurance activities (other than reinsurance)
• Financing and leasing activities, except 1) Financing to related parties & 2) Related to aircraft
• Ownership or exploitation of immovable property, except the transaction with another free zone person related to immovable commercial property in free zone
• Intellectual property assets income
• Ancillary activities to above

Corporate Tax on Free Zone Business – Qualifying & Non Qualifying – De Minimis Requirement

One of the condition for Qualifying Free Zone Persons (QFZP) is to satisfy De MinimisRequirement, for which Non-Qualifying Revenue should not exceed below limits.

Qualifying Free Zone (QFZ) Taxability

Qualifying Free Zone (QFZ) Taxability