Tax Regime

Tax Regime

Operating in AIFC Public Register Government services Visa Tax Regime Sanctions Compliance AIFC Territory and Premises

The tax regime within the AIFC is determined by the Tax Code, with the exception of deletions established by Article 6 of the Constitutional Law. Deletions are the following tax benefits for AIFC participants:

  1. Corporate income tax, Value added tax (CIT, VAT): on income received from the provision of financial services within the AIFC (if there is a license obtained from the AIFC Committee for Financial Services Regulations):

1) Islamic bank banking services;

2) reinsurance services and insurance brokerage services;

3) investment asset management services of investment funds, their accounting and storage, as well as issuance, placement, circulation, redemption and repayment of securities of investment funds;

4) brokerage and/or dealer, underwriting services;

5) other financial services defined by a joint act of the AIFC and the Ministry of National Economy and the Ministry of Finance.

  1. Corporate income tax (CIT): on income received from legal, auditing, accounting, consulting services provided to AIFC bodies, as well as AIFC participants providing financial services, the list of which is specified in paragraph 3 of Article 6 of the Constitutional Law (see above).

For exemption from CIT, AIFC participants must keep separate records in accordance with the Regulations on Keeping Separate Accounting of Income Subject to Exemption of Corporate Income Tax and Subject to Taxation, and Expenses Subject to Allocation to Deductions by the Participants of AIFC.

  1. Property tax and land tax on objects located within the AIFC for AIFC participants who provide financial and support services, the list of which is specified in paragraphs 3 and 4 of Article 6 of the Constitutional Law (see above).
  1. Foreigners who are employees of an AIFC participant are exempt from individual income tax on income from activities in the AIFC under an employment contract concluded with an AIFC participant providing financial and support services, the list of which is specified in paragraphs 3 and 4 of Article 6 of the Constitutional Law.
  1. For individuals and legal entities from corporate and individual income taxes on income:

- from the increase in value when selling securities that are on the date of sale in the official lists of the stock exchange;

- in a form of dividends and remuneration on securities that are on the date of accrual of such dividends or remuneration in the official lists of the stock exchange;

- from the increase in value when selling shares or partnership shares in the authorized capitals of participants-legal entities;

- as well as in a form of dividends on shares of participants-legal entities or on partnership shares in the authorized capitals of participants-legal entities that are registered in accordance with the current law of the AIFC.

For more detailed information on tax administration, separate accounting and other requirements, please follow the link.