New Tax Rules valid from June 2023

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Important tax information: Beginning on June 1, 2023, Mainland Companies will pay 9% Corporate Income Tax.

There are several ways for Freezone businesses to avoid paying corporate taxes:

Basic business operations are tax-free. I do international business, much like you do with your business license, your company’s operations inside the freezone, or with other freezones. They have 0% VAT in bold. Up until 2071, this will continue!

We need to conduct accounting for proof. It uses the term qualified income to indicate in the accounting that the company does not do any business locally or with any mainland companies. As soon as you transact business with mainland or local businesses, 9% corporate tax is due.

There are additional guidelines that we must develop for FZ. We must have a FZ business with a lease and an office. Otherwise, corporate income tax will also be subject to the restrictions. No longer feasible is a “mailbox” office.

Holding companies are similar.

The personal income tax will not change. that private income, such as rental fees or salary, is still not taxable.

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