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Taxation in RAK Free Zone

Taxation in RAK Free Zone

Ras Al Khaimah (RAK) is one of the best emirates in the UAE and the Ras Al Khaimah Free Zone is one of the most advantageous to open a company in. Foreign investors coming to RAK free zone are usually attracted by the various types of companies available for registration, but also for the taxation system imposed by the free zone’s authorities.

Our company incorporation agents in Dubai can assist foreign investors who want to open companies in RAK and RAK free zone.

The RAK free zone’s tax system

The Ras Al Khaimah Investment Free Zone Authority is in charge with the imposition of the taxes, or better said with the tax exemptions in the free zone. The Emirate of RAK is known as a tax-free emirate, just like Dubai, and the same tax regulations apply to the RAK free zone.

RAK free zone is mainly reputable for setting up offshore companies due to the tax exemptions foreign investors can benefit from here. Among the tax exemptions available in RAK free zone are:

  • zero corporate tax;
  • zero income tax;
  • free capital and profits repatriation;
  • zero sales tax;
  • zero wealth tax.

When it comes to the taxation of foreign employees in RAK companies, there are no salary taxes imposed. Also, the RAK Free Zone Authority does not levy any social insurance taxes.

Our Dubai company formation agents can offer more information on the tax exemptions available in RAK free zone.

Taxation of foreign shareholders in RAK companies

One of the greatest advantages offered by RAK free zone is allowing full foreign ownership on the establishment of companies here. This is why the taxation of foreign shareholders, companies or individuals in free zone companies is quite important. Even if they are not taxed here, most of them must report to the authorities of their parent countries and thus pay certain taxes there on the income received in Ras Al Khaimah Free Zone. However, in order to reduce the tax burden, the UAE has entered agreements for the avoidance of double taxation with many countries.

For complete information on taxation matters in RAK free zone, do not hesitate to contact our company incorporation consultants in Dubai.