RAKEZ company accounting for industrial and trading businesses

Only a free zone person can be a qualifying free zone person. RAKEZ offers solutions for both free zone and non-free zone companies, so a business licensed through RAKEZ should confirm which kind of licence it holds before assuming any 0% rate. A non-free zone company is taxed at 0% on taxable income up to AED 375,000 and 9% above, like any mainland business.

In HelloBooks, the licence type is recorded on the company profile, and the income categories are set up to match. A group with one of each can run both as separate entities on the Business plan.

Consider a RAKEZ free zone factory making PVC pipes. Revenue is AED 32 million from sales of its own products, plus AED 1.1 million from trading imported fittings bought in finished form and sold to mainland plumbing contractors. Manufacturing is a qualifying activity in the FTA guide, subject to conditions. If the fittings income is non-qualifying, it must stay below the lower of AED 5 million and 5% of revenue, which here is AED 1.655 million. It does.

Two things could change that. Pipe sales to individual homeowners at a factory outlet would be transactions with natural persons, normally excluded. And income from leasing spare warehouse space is property income, which the FTA guide limits to narrow cases for qualifying treatment. The AI tags each income stream so the company sees the total early.

• Income accounts for manufactured goods, traded goods, rent and other income
• Customer type on each invoice: free zone, mainland, individual, export
• Raw materials, work in progress and finished goods kept apart

Most of RAKEZ's companies are not factories. A freelancer or small consultancy on a RAKEZ licence keeps simple books: invoices, receipts, a bank statement uploaded each month and matched by the AI. If it is not a qualifying free zone person and its revenue is AED 3 million or less, small business relief may be available. A qualifying free zone person cannot elect it.

If a RAKEZ factory needs an industrial chart of accounts, batch tracking or approval rules for plant purchases, the HelloBooks team can configure them after a call booked at /book-a-demo or a note to hello@hellobooks.ai.