Like many others, I was promised by my UAE freezone when registering the company that there would be no corporate income tax for at least 50 years from the registration date.
After the latest news, I contacted them to ask about what happened to their promise. Here is their answer:
I'm curious to know what your freezones told you when asking about their broken promises.
Hey Ecool, i've gone through a few of your posts about the UAE CT, then I want to share with you my experience and I would be more than happy to hear out your opinion about what I'm gonna say.
I have a FZCO incorporated in IFZA and got in touch with IFZA itself about CT:
Me: will the CT apply also to IFZA FZCOs?
IFZA: yes, however it will apply to the first full financial year after 1st June 2023
Me: then if my current financial year (2023/2024) started on 1st May 2023, will this financial year be taxed?
IFZA: no, the first taxed financial year will be the one that will start on 1st May 2024
Me: what are the rules for changing the start and the end of the financial year?
IFZA: by default, according to IFZA AoA, the first financial year of a FZCO starts on incorporation date and shall be not less than 6 months and not more than 18 months, afterwards by default it will be 1st Jan/31st Dec; if a FZCO wants to move these dates can do it by means of a board resolution
Me: shall that board resolution be signed/approved/registered by you or anyone else? Is there a register for FZCO financial years?
IFZA: no, just keep that board resolution signed and stamped by the company's legal representative in company's records
I have all this written in emails
Now, until 1st May 2024 we're safe, but afterwards? What will the place to be next?
I am currenlty investigating about caribbeans and/or channel islands, any other suggestions?
Thanks