Dubai Knowledge Park (DKP)Free zone tax status and compliance
Dubai
Dubai Development Authority
The Verdict
The Knowledge Hub; Specialized in 'Educational' vs. 'Commercial' Revenue Splits.
I. Statutory Basis
As a Qualifying Free Zone Person, this jurisdiction requires strict adherence toCore Income-Generating Activities.Service-based Free Zone. Article 18 QFZP status is contingent on proving that 'Core Income-Generating Activities' (CIGA)—the actual teaching or training—are physically localized within DKP-approved classrooms or administrative offices.
Compliance Roadmap
Curriculum-to-Tax Mapping: Documenting 'KHDA-approved' courses as 0% Qualifying Income vs. non-approved workshops as 9%
Trainer Residency Audit: Verifying that key trainers and curriculum developers are UAE residents to satisfy 'Main Management' and CIGA tests
VAT-to-CT Revenue Reconciliation: Cross-referencing 0% VAT tuition returns with Corporate Tax 'Qualifying Income' filings to ensure consistency
Audit Hotspots
Classifying 'Executive Coaching' or 'Corporate Consulting' as 0% 'Qualifying' education income
Inadequate substance documentation for 'Hybrid/Remote' training sessions rendered to mainland clients
Assuming all KHDA-licensed entities are automatically exempt from Corporate Tax without a QFZP substance audit
Jurisdictional Connectivity
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