Dubai Internet City (DIC)Free zone tax status and compliance
Dubai
Dubai Development Authority
The Verdict
Global Tech Powerhouse; The Epicenter of 'Qualifying IP' Audits.
I. Statutory Basis
As a Qualifying Free Zone Person, this jurisdiction requires strict adherence toCore Income-Generating Activities.DIC is a Non-Designated Zone. QFZP status is strictly applied to 'Qualifying Intellectual Property' and authorized 'Headquarter Services.' Compliance requires a granular R&D ledger to satisfy OECD-aligned tax standards.
Compliance Roadmap
Forensic R&D Logging: Establishing a localized ledger of software development costs to satisfy the Nexus Ratio
Revenue Decoupling: Implementing a billing structure that separates software licensing (0%) from implementation/consulting (9%)
CIGA Localization: Documenting that the 'Core Income-Generating Activities' (coding, architecture) occur physically within the DIC perimeter
Audit Hotspots
Treating hardware resale or standard IT support as 'Qualifying' tech income
Failing to localize R&D, leading to a Nexus Ratio of 0 and a resulting 9% tax on all IP profits
Inadequate documentation of 'Copyrighted Software' status for SaaS platforms
Jurisdictional Connectivity
Check your DIC setup
Scout scores Dubai Internet City against your activity, ownership and visa needs, with full setup costs, and compares it with every other free zone and mainland.
See costs and setup options