Questions & Answers
Is it mandatory to register an offshore company from RAKICC for corporate tax?
Dear Sir/Madam,
Please advise if it is mandatory to register an offshore company from RAKICC for corporate tax.
Meanwhile, RAKICC states that offshore companies technically cannot register because RAKICC is not on the list of the FTA (Tax Authority).
RAKICC suggests that offshore companies must wait for the FTA's new decree to update the list.
Dear Questioner,
The UAE introduced a corporate tax rate of 9% in 2023. However, this tax applies to onshore businesses and excludes entities like RAKICC offshore companies.
It appears RAKICC acknowledges offshore companies are not currently on the FTA's list of taxable entities.
While the current situation suggests RAKICC offshore companies are exempt, it's advisable to seek confirmation directly from the RAK International Corporate Centre or the Federal Tax Authority (FTA).
Dear Questioner,
The liability of an offshore company to UAE corporate tax depends on its level of engagement within the UAE.
Entities with a permanent presence in the UAE or deriving income from UAE-based activities will be subject to taxation and, thus, might be required to register with the FTA.
