UAE Free Zone Companies: Who Can Enjoy the Zero Corporate Tax Regime?
Introduction Special Economic Zones (SEZs) play a pivotal role in a nation’s economic development. Take Shenzhen, for example. Once a small village in China with a population of just 30,000, it transformed into an economic powerhouse after being designated an SEZ in 1980. By 2019, its GDP per capita had skyrocketed by 33,479%! During the same period, China’s GDP increased more than 54 times. This transformation demonstrates the remarkable effect that SEZs can have on economic growth. The UAE has been a trailblazer in establishing free zones, a type of SEZ, offering businesses numerous advantages. In fact, six of the world’s top ten free zones were located in the UAE in 2023. The Dubai Multi Commodities Centre (DMCC) even earned the title of “Global Free Zone of the Year” for nine consecutive years. These free zones have been key in positioning the UAE as a global investment hub. To maintain their appeal, the UAE introduced a groundbreaking initiative: a 0% corporate tax rate for ...