When Is A Person Based In A Free Zone Considered A Qualified Person Existing In A Free Zone?
A Free Zone-based person who is a Free Zone-based Qualified Person can benefit from a preferential corporate tax rate of 0% on “Qualified Income” only.
In order for a person established in the free zone to be considered a qualified person established in the free zone, all of the following must apply to him:
Maintains a realistic and adequate presence in the country.
Achieve a “qualified income”.
Did not choose to be subject to corporate tax at the basic rates.
Complies with transfer pricing requirements under the Corporation Tax Act.
The Minister may specify additional conditions that must be met by the qualified person residing in the free zone.
If an Eligible Person based in the Free Zone does not meet any of these conditions, or elects to be subject to the ordinary system of corporate tax, he will be subject to the basic rates of corporate tax from the beginning of the tax period in which he did not meet these conditions.
