Corporate Tax Services in Ras Al Khaimah

0% on taxable income up to AED 375,000 and 9% above that threshold. Corporate Tax is a federal regime, so rates are identical in RAK, Dubai, Abu Dhabi and the other Emirates. Qualifying Free Zone Persons pay 0% on qualifying income, and in-scope entities of large multinational groups may face a 15% effective rate.

Yes, without exception. Every RAKEZ company must register with the FTA through EmaraTax and file an annual return, including those expecting 0%, holding companies with no trading activity, and dormant entities. Late registration carries a fixed AED 10,000 penalty.

Yes. RAK ICC international business companies are UAE-incorporated juridical persons and therefore taxable persons within the regime. They must register and file annual returns, and the AED 10,000 late registration penalty applies. Being used only for international or holding activity does not remove the obligation.

Generally no. Qualifying Free Zone Person status requires adequate substance — premises, qualified employees, and operating expenditure in the zone — which these structures are designed not to have. Standard rates therefore usually apply. Where the company holds UAE property, note separately that income from immovable property is largely excluded from qualifying income in any case.

Manufacturing and processing of goods is a listed qualifying activity, so industrial occupiers with a plot, plant and payroll often have a genuinely strong position — stronger than most free zone businesses elsewhere in the UAE. But all conditions must be met: substance, audited accounts, transfer pricing compliance, and non-qualifying revenue within the de minimis limit. Growing mainland sales are the most common cause of failure.

Non-qualifying revenue must not exceed the lower of 5% of total revenue or AED 5 million in a tax period. Exceed it and the company ceases to be a Qualifying Free Zone Person for that period and a defined number of subsequent periods, with all income taxed at 9%. Revenue attributable to a permanent establishment or immovable property is excluded from the calculation and taxed separately.

Possibly, but it must be established rather than assumed. Extractive businesses and non-extractive natural resource businesses may be exempt from federal Corporate Tax where the business holds an interest or right granted by the Emirate, is effectively subject to tax at Emirate level, and meets notification requirements. The exemption attaches to the qualifying activity rather than the whole group, and non-extractive businesses generally lose it on revenue from persons who are not businesses, subject to a de minimis threshold. Assess each entity individually and confirm with the FTA or Ministry of Finance.

No. Supplying goods or services to an exempt business does not confer exemption. Equipment suppliers, hauliers, contractors, and maintenance providers serving the quarrying sector are ordinary taxable persons at 9% above the nil band.

Sales to mainland customers are generally non-qualifying income taxed at 9%, and they count toward the de minimis limit. Small volumes can be absorbed; material domestic business usually needs a separate mainland entity to protect the free zone company's status. Structure this before the revenue arrives, not after.

A resident business with revenue at or below AED 3 million in the relevant period and all previous periods may elect to be treated as having no taxable income. It must be actively elected in the return and applies to tax periods ending on or before 31 December 2026 under current rules. A Qualifying Free Zone Person cannot claim it, so free zone companies must choose one route.

An audit is required to claim Qualifying Free Zone Person status, and separately by RAKEZ for licence renewal depending on your licence type. Larger businesses are also subject to audited financial statement requirements under the Corporate Tax framework. A late or missing audit is therefore a tax exposure as well as a licensing one.

Directly and significantly. Closing inventory determines cost of sales, which determines taxable profit. Under IAS 2, fixed production overheads are absorbed based on normal capacity, so in low-utilisation periods unabsorbed overhead relating to idle capacity must be expensed rather than capitalised into stock. This is one of the most common material errors we find in UAE manufacturing computations.

Yes, and for free zone companies with added consequence: transfer pricing compliance, including documentation where thresholds are met, is an explicit condition of Qualifying Free Zone Person status. Non-compliance does not simply trigger an adjustment; it can cost the 0% rate entirely.

A Qualifying Free Zone Person generally cannot be a member of a tax group. A RAK company taxed at standard rates may be able to join, subject to ownership and residency conditions. Industrial groups with a mix of free zone and mainland entities should model the trade-off between grouping and free zone status.

Within nine months of the end of your tax period. A December year-end means filing and payment by 30 September of the following year. The obligation applies equally to companies reporting 0% qualifying income and to dormant entities.

Late registration carries a fixed AED 10,000 penalty. Late filing penalties accrue monthly, with further penalties for late payment and incorrect returns. For a free zone company the larger exposure is usually not the penalty but the loss of 0% status across multiple periods. Verify current penalty schedules with the FTA.

Audited financial statements, revenue analysis by counterparty, evidence of customers' Free Zone Person status, costing and inventory records, substance evidence such as payroll and lease documents, transfer pricing documentation, and all support for the return. Retain for the statutory period prescribed by the FTA, generally seven years.

Yes, and it is common — particularly for RAK manufacturers with a Dubai trading or head office entity. Corporate Tax is federal, so the group files under one regime, but each entity has its own registration and computation unless a tax group is formed. We handle multi-entity, multi-Emirate groups from our RAK and Dubai offices with a single engagement team.

Book a free consultation or call +971 4557 0204. Bring your trade licence, financial year end, last accounts if available, and a breakdown of revenue by customer type. We will confirm your profile and registration position, outline what your filing requires, and quote a fixed fee before any work begins. Meetings are available at our RAK Tower office in Al Nakheel.

KGRN provides registration, qualifying income analysis, natural resource exemption assessment, substance review, de minimis monitoring, cost accounting review, audited financial statements, transfer pricing documentation, return filing, RAK ICC compliance packages, FTA representation, and ongoing advisory — from an office in Ras Al Khaimah.