What is a Free Zone and why does such a place exist?
The answer to this is quite simple. Any intelligent and forward thinking government is one that wants to attract new business and hopefully create jobs for its citizens. One way that some governments have done this, is to pass special legislation that permits the existence of what are known as Duty Free Zones or we could also say “Duty Free Business Parks”. These are special zones, campuses, industrial parks or compounds that offer a number of special benefits to the occupants. Such places are certainly located within the borders of a particular country, but in a way, operate somewhat as sort of an autonomous facility. In other words, such places are sort of business tax havens, allowing business owners to operate with limited regulation, restriction and taxation. The most obvious and direct benefit is of course that the business may operate and enjoy either 100% tax-free income or a greatly reduced tax rate of 5%, 10% or something similar – for a period of time, often 20 years or long
