On 19 July 2023, the United Arab Emirates (UAE) Ministry of Finance (MoF) issued a Consultation Paper, that has clarified various categories of ‘qualifying activities’ and ‘excluded activities’, as set out under Ministerial Decision 139 of 2023. This is a significant step towards providing more clarity on Free Zone taxation.
The MoF is inviting businesses to contribute their perspectives on the Consultation Paper. The deadline for submissions is 2 August 2023. This engagement from the MoF represents a substantial opportunity for businesses. It allows them to voice any uncertainties they may have regarding the specified qualifying or excluded activities.
In light of this update, our Corporate Tax team held a 60-minute webinar on Tuesday, 25 July 2023. During this session, our experts provided insight into the key highlights of the Consultation Paper, its impact on free zone businesses, and the possible interpretations that businesses should consider when responding to the Consultation Paper.