Laiba Shahzad
A separate license should be considered for new businesses entering the UAE if they are planning to have both mainland and free zone operations. It could be the best way to deal with upcoming corporate tax obligations with this dual licensing scheme.
CT rules require businesses based in free zones to pay 0% tax while extensive income generation from mainland operations have to pay the full 9%. According to consultants, this is why businesses should consider getting dual licenses for operations in both free zones and mainland locations. Atik Munshi, managing partner at the consultancy Finexpertiza UAE said That is quite likely.
Many export-oriented companies have set up bases in UAE free zones which benefit from zero tax rates
The UAE is traditionally a trans-shipment hub so there are companies with a considerable amount of export revenue on the mainland.
In these circumstances, Mainland companies can take advantage of zero-rate exports by setting up free zones for their export services.
