Dubai Maritime City (DMC)Free zone tax status and compliance
Dubai
PCFC (Trakhees)
The Verdict
The Sovereign Maritime Node; Specialized in Heavy Asset CIGA.
I. Statutory Basis
As a Qualifying Free Zone Person, this jurisdiction requires strict adherence toCore Income-Generating Activities.Designated Zone status for VAT. Corporate Tax compliance is governed by Article 18, with a specific focus on manufacturing and processing within the maritime sector as defined under Cabinet Decision No. 100.
Compliance Roadmap
Dry-Dock CIGA Verification: Maintaining a daily technical log of repair and manufacturing activities performed on-site
Technical Labor Audit: Utilizing WPS (Wages Protection System) data to prove that engineers and shipwrights are localized to the DMC unit
Asset-Based Substantiation: Documenting high-value machinery and Capex investment to support the 'High Substance' rating
Audit Hotspots
Mixing offshore 'Ship Management' services (taxable) with on-site 'Manufacturing' (qualifying)
Inadequate documentation for 'Spare Parts' inventory moving from the Designated Zone to mainland vessels
Failing to separate technical repair fees from taxable 'Consulting' income
Jurisdictional Connectivity
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