Tax Agency Number (TAN) 30004113

HFZA Approved Auditors

HFZA Approved Auditors

HFZA Approved Auditors

Hamriyah free zone-Approved auditors, accountants and tax consultants

HFZA : An overview

Situated strategically in the heart of the United Arab Emirates, Hamriyah Free Zone Authority (HFZA) serves as a thriving center for business excellence. Renowned for its top-notch infrastructure and investor-friendly atmosphere, HFZA extends a wide range of facilities and services to businesses spanning diverse sectors. Functioning as a leading free zone, HFZA offers a dynamic platform for global trade, manufacturing, and logistics, drawing entrepreneurs and investors from around the world. Boasting cutting-edge facilities, efficient processes, and a dedication to innovation, HFZA remains the preferred choice for businesses seeking growth opportunities in the ever-evolving landscape of the Middle East.

Saif Chartered Accountants, registered auditors with expertise in Hamriyah Free Zone Authority (HFZA), play a pivotal role in conducting audits for companies within the free zone. With a dedicated branch office located inside HFZA, we bring specialized knowledge and experience to ensure thorough and accurate auditing services for businesses operating in this dynamic economic hub. Our commitment is to contribute to the financial integrity and compliance of HFZA-based companies, providing comprehensive audit solutions tailored to meet their specific needs.

HFZA Audit, Accounting, and Tax Consultancy Solutions

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Do Free Zone companies need to pay Corporate Tax in the UAE?

Understanding the corporate tax rules for Free Zone Persons in the UAE is important. Free Zone Persons, those doing business in Free Zones, have different tax implications compared to juridical persons or individuals. To qualify, certain conditions must be met:

  • ● Maintain sufficient substance in the UAE by actively conducting business activities.
  • ● Earn "Qualifying Income" as defined by the Cabinet Decision.
  • ● Adhere to transfer pricing rules and maintain related documentation.
  • ● Choose not to pay corporate tax in full.

It's crucial to meet all these conditions to be considered a qualified Free Zone Person. The Ministry may introduce additional conditions, so it's advisable to check their website for updates.

What is meant by "qualifying income"?

Under the Corporate Tax (CT) regime, a 0% CT rate applies to qualifying income, whereas a 9% CT rate is levied on taxable income that doesn't meet the criteria for qualifying income among Qualifying Free Zone Persons, as outlined in the CT regime. The specific definition of qualifying income is not currently stipulated by law, and the Cabinet Decision of the CT regime is pending a decree on this matter.

Is it mandatory for a Free Zone company to register and submit the corporate tax return?

Certainly, Free Zone entities are obligated to register through the Federal Tax Authority (FTA) website, adhering to the given instructions. This requirement applies even if the entity doesn't meet the criteria as a Free Zone Person but conducts operations within a Free Zone. Furthermore, such a company is required to submit the corporate tax return in accordance with the corporate tax regime, irrespective of eligibility for qualifying income rates.

The Importance of Authentic Auditing in HFZA within the Changing Tax Scenario of the UAE

In the dynamic business landscape of the United Arab Emirates (UAE), particularly within the Hamriyah Free Zone Authority (HFZA), the significance of genuine auditing has become increasingly crucial against the backdrop of a rapidly evolving tax environment. As the UAE continues to refine and update its tax regulations, businesses operating within HFZA must prioritize genuine auditing practices to navigate the complexities of the changing tax landscape.

Genuine auditing serves as a cornerstone for businesses, offering a comprehensive and accurate assessment of financial activities within HFZA. It ensures transparency, accountability, and compliance with the evolving tax laws in the UAE. With the implementation of new tax measures, including the introduction of VAT and adjustments to corporate tax rates, genuine auditing becomes a strategic tool for businesses to adapt and thrive.

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