DMCC Dubai - Whether Corporate Tax Applicable ? as per interaction with customer
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Talreja and Talreja
Apr 14, 2025, 12:34:59 AM4/14/25
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Dear Members,
The Mail is regarding DMCC - Whether Corporate Tax applicable on DMCC Entities involved in Trading or High Sea Sales Activity?
One of the customers called and asked us -
"I am registered in DMCC and just doing the High Sea Sales. I am sitting in India". Will I have to pay corporate tax on profits earned by DMCC Entity ? I thought there is no corporate tax in DMCC"
Our Answer :
"DMCC is a Qualified Freezone but at the same time a Non-Designated Freezone as well. And in case you are into Trading activity of Metals, Minerals, Energy and Agri Commodities, then there is no Corporate Tax, but in case you are into Trading Activity of items or goods other than above, there is a condition mentioned in Corporate Tax regulations that you need to be in a Designated Freezone if you are into a Trading Activity and wish to claim 0 % Corporate Tax Benefits".
Hence a Simple Answer to the above question is
Metals, Minerals, Energy and Agri Commodities - 0% Corporate Tax
Other Goods or Services - 9% Corporate Tax as soon as the profit goes above AED 375000 in a year.
A Big Note :
Please note there are other conditions also to be met in case you want to claim 0% Tax Benefit. We are not discussing other Conditions here.
Solution to this :
Discuss with Talreja & Talreja LLC for a Proper Tax Strategy.
The Mail is regarding DMCC - Whether Corporate Tax applicable on DMCC Entities involved in Trading or High Sea Sales Activity?
One of the customers called and asked us -
"I am registered in DMCC and just doing the High Sea Sales. I am sitting in India". Will I have to pay corporate tax on profits earned by DMCC Entity ? I thought there is no corporate tax in DMCC"
Our Answer :
"DMCC is a Qualified Freezone but at the same time a Non-Designated Freezone as well. And in case you are into Trading activity of Metals, Minerals, Energy and Agri Commodities, then there is no Corporate Tax, but in case you are into Trading Activity of items or goods other than above, there is a condition mentioned in Corporate Tax regulations that you need to be in a Designated Freezone if you are into a Trading Activity and wish to claim 0 % Corporate Tax Benefits".
Hence a Simple Answer to the above question is
Metals, Minerals, Energy and Agri Commodities - 0% Corporate Tax
Other Goods or Services - 9% Corporate Tax as soon as the profit goes above AED 375000 in a year.
A Big Note :
Please note there are other conditions also to be met in case you want to claim 0% Tax Benefit. We are not discussing other Conditions here.
Solution to this :
Discuss with Talreja & Talreja LLC for a Proper Tax Strategy.
Regards
CA Kapil Talreja
U.A.E || U.S.A: +971-55-4559621
INDIA: +91-6356000989
OFFICE: Dubai | Sharjah | U.S.A | India
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