Exploring the Tax Advantages of a RAK Freezone Company

1. Exploring the Tax Advantages of a RAK Freezone Company

2. A RAK (Ras Al Khaimah) Free Zone Company is a business entity established in one of the free zones located in the emirate of Ras Al Khaimah, United Arab Emirates. These free zones offer a range of tax advantages and incentives to attract foreign investors and businesses. Here are some of the tax advantages associated with setting up a RAK Freezone Company: 8/05/20XX 2

3. Zero Corporate Tax Zero Corporate Tax: One of the most • significant tax advantages of establishing a company in an RAK free zone is the absence of corporate income tax. This means that companies operating within the free zone are not subject to corporate tax on their profits. This is a major incentive for businesses looking to expand in the region. 100% Foreign Ownership 100% Foreign Ownership: In many free zones in Ras Al Khaimah, foreign • investors can have 100% ownership of their companies. This is in contrast to the mainland of the UAE, where a local sponsor is typically required to have a majority stake in the company. 8/05/20XX 3

4. Full Repatriation of Profits Full Repatriation of Profits: RAK free zone • No Import or Export Duties No Import or Export Duties: RAK free • companies are usually allowed to repatriate 100% of zone companies often enjoy exemptions their profits and capital without any restrictions. This from import and export duties on goods means you can take your earnings out of the country and services. This can significantly without facing additional taxes or currency exchange reduce the cost of doing business, restrictions. particularly if your business involves a No Value Added Tax (VAT) No Value Added Tax (VAT): While the UAE has • lot of international trade. introduced VAT, certain free zones, including RAK No Personal Income Tax No Personal Income Tax: The UAE does • free zones, may provide exemptions or reduced not levy personal income tax on rates for specific goods and services. This can lead individuals, including expatriate to cost savings for businesses. employees. This can make it attractive Flexible Legal Framework Flexible Legal Framework: RAK free zones offer a • to skilled workers and professionals, as flexible legal framework and simplified regulatory they can retain a larger portion of their procedures for business setup, making it easier for income. companies to establish and operate. 8/05/20XX 4

5. It's important to note that while RAK free zones offer numerous tax advantages, there may still be certain fees and costs associated with setting up and operating a business in the free zone. Additionally, compliance with local regulations and laws is essential to maintain tax benefits and avoid potential legal issues. Before establishing a RAK Free Zone Company or any business entity in the UAE, it is advisable to consult with legal and financial experts who specialize in UAE company formation to ensure that your specific business needs and objectives are met while complying with all relevant regulations. Tax laws and regulations can change, so staying up- to-date with the latest developments is crucial for your business's success. 8/05/20XX 5