Following the enactment of Emiri Decree No. (12) of 2024, which amends Emiri Decree No. (4) of 2016, the Ras Al Khaimah International Corporate Centre (RAK ICC) has introduced key updates to enhance operational flexibility and tax benefits for Offshore Companies registered under RAK ICC.

Key Update: Authorization to Issue Free Zone Commercial Licenses

RAK ICC is now authorized to issue Free Zone Commercial Licenses to its International Business Companies. This new development allows these companies to obtain a RAK ICC Free Zone Commercial License and apply for a RAKEZ Free Zone address, enabling them to conduct business activities within the Ras Al Khaimah Economic Zone Authority (RAKEZ).

Benefits to Offshore Companies:

• Operational Flexibility: Offshore companies can now establish operations within the RAKEZ Free Zone, benefiting from its strategic location, infrastructure, and tax incentives.
• Tax Benefits: 0% Corporate Tax Rate: Offshore companies with a RAK ICC Free Zone Commercial License may qualify for the 0% tax rate under the UAE Corporate Tax Law.
  • To qualify, companies must meet the Qualifying Free Zone Person (QFZP) criteria and satisfy these conditions:

• For a full list of QFZP criteria, refer to the Federal Tax Authority's Basic Tax Information bulletin.

Steps Offshore Companies Should Take: 

• Seek a Registered Agent: Engage a Registered Agent for Free Zone Commercial Licenses.
• Evaluate Business Needs: Choose the best business address option in RAKEZ based on operational needs and budget.

• Registered Agent’s Address: Use the address of a Registered Agent (or its branch) that is already based in RAKEZ.

• Co-Working Spaces: Leverage flexible co-working spaces for a cost-effective business address.

• Leasing Office Space: Lease dedicated office space within RAKEZ for businesses requiring their own premises.

• Seek Professional Advice: Consult tax and legal experts for guidance on UAE Corporate Tax Law and QFZP requirements.
• Ensure Compliance: Meet regulatory requirements (economic substance, transfer pricing, de minimis) to qualify for tax benefits.

The recent amendments by RAK ICC provide Offshore Companies with valuable opportunities for tax efficiency and operational flexibility. Ensuring compliance with the UAE Corporate Tax Law and related regulations is key to fully benefiting from these changes.