Fujairah Free Zone (FFZ)Free zone tax status and compliance
Fujairah
Fujairah Free Zone Authority
The Verdict
The Maritime Logistics Hub; Specialized in 'Outside-the-State' VAT Integrity.
I. Statutory Basis
As a Qualifying Free Zone Person, this jurisdiction requires strict adherence toCore Income-Generating Activities.Statutory Designated Zone. Article 18 QFZP status centers on the 'Distribution' activity, requiring annual statutory audits and strict WPS alignment for the logistics labor force.
Compliance Roadmap
Daily Bill of Entry Audit: Automated matching of port-side customs documents to tax-basis revenue records
WPS Payroll Alignment: Linking localized staff presence to the 'Headquarter and Logistics' CIGA requirements
Service Ring-Fencing: Segregating 0% 'Port Services' from 9% 'Mainland Consultancy' or administrative revenue
Audit Hotspots
Mixing Port-side qualifying logistics with non-qualifying Mainland-sourced consulting income
Inadequate documentation for 'High-Seas' trading where the bill of lading is the only proof of substance
Failure to reconcile VAT-suspended imports with the final tax-return turnover
Jurisdictional Connectivity
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