Corporate Tax Advisory in Ras Al Khaimah

Government entities, government-controlled entities engaged in mandated activities, extractive businesses (oil & gas), and qualifying public benefit entities are exempt. Individuals earning employment income, investment returns, or real estate income (in their personal capacity) are also generally not subject to Corporate Tax.

Businesses with revenue of AED 3 million or less per tax period can elect for small business relief, which treats their taxable income as zero — effectively paying 0% Corporate Tax. This relief is available until December 31, 2026, and businesses must file an election with the FTA.

Qualifying Free Zone Persons (QFZPs) can benefit from a 0% Corporate Tax rate on qualifying income. To qualify, they must maintain adequate substance in the free zone, derive qualifying income (as defined by the Cabinet Decision), comply with transfer pricing rules, and prepare audited financial statements.

Yes. RAK ICC companies are UAE resident entities subject to the Corporate Tax Law. They must register for CT, maintain financial records, and file annual returns. RAK ICC companies with no UAE-sourced income and no permanent establishment may have minimal tax liability, but the filing obligation remains. The previous 'no tax' advantage of offshore structures no longer applies.

RAK manufacturers exporting goods are subject to the standard 9% CT rate on taxable income above AED 375,000 unless they qualify as QFZP. Manufacturing companies in RAK FTZ may qualify for 0% on export income that constitutes qualifying income. Capital allowances on manufacturing equipment and machinery reduce taxable income.

It depends on your structure and income sources. Many RAK ICC holding companies set up before CT may benefit from restructuring — for example, converting to a mainland or free zone entity, or establishing adequate substance to qualify as QFZP. We recommend a CT health check to assess whether your current RAK ICC structure remains tax-efficient.