Free zone guide · Ras Al Khaimah

RAKEZ corporate tax: when the 0% rate actually applies

Ras Al Khaimah Economic Zone (RAKEZ) is a cost-effective northern-emirates zone popular with manufacturers, industrial SMEs and startups. Since June 2023, a RAKEZ company keeps 0% corporate tax only as a Qualifying Free Zone Person (QFZP) — and only on qualifying income. Everything else is taxed at 9%, with no AED 375,000 free band.

RAKEZ at a glance

Emirate	Ras Al Khaimah
Designated zone (goods distribution)	Partly (RAK designated areas)
Rate on qualifying income	0%
Rate on non-qualifying income	9% (no 375K band)
Audited accounts required for QFZP	Yes — always

What this means for typical RAKEZ businesses

RAKEZ industrial licensees doing genuine manufacturing hold one of the cleanest qualifying activities in the regime. Service and consultancy licensees face the same mainland-client problem as everywhere else — check the qualifying-activity list before assuming 0%.

Failing any QFZP condition — substance, audit, de minimis — costs the status for that year and the next four. If in doubt, run the 60-second QFZP checker.

Estimate your position

Use the corporate tax calculator with the Free Zone toggle to model your qualifying/non-qualifying split, and see the full free-zone guide for the qualifying-activity list.

General information, not tax advice. QFZP analysis depends on your specific facts — confirm with a licensed UAE tax agent.