Tashkent International Financial Center

Criteria

TIFC

DIFC

AIFC

IFC Istanbul

Presence requirements

To be determined

Moderate

Legal entity or branch, physical office / legal address and adequate staffing in the free zone

Moderate

Registered office / legal address required; substance requirements depend on activity and regulatory status

High

Participant certificate, physical office in the IFC and relevant sector licenses / permits

Applicable law

Proprietary TIFC law English common law fills gaps

Proprietary DIFC law English common law fills gaps

English common law

Turkish law

Independent court

✓

✓

✓

✘

International arbitration

✘

✓

✓

Limited

May holding companies / SPVs become residents

✓

✓

✓

Limited

Redomiciliation

Currently not provided

✓

✓

Limited

Digital assets

✓

✓

✓

Limited

International exchange infrastructure

Currently not provided

Nasdaq Dubai

AIX

Borsa Istanbul

Talent / visa regime

Up to 5-year visas for employees and family members Foreign hires allowed without work permit confirmation

Work visas and Emirates ID generally issued for 2 years, with extension Visa quotas linked to office size

Up to 5-year visas for employees, investment residents and families Foreign hires allowed without work permit confirmation

Simplified work permit process for foreign employees of IFC participants and eligible treasury centers

Criteria

TIFC

DIFC[2]

AIFC

IFC Istanbul[3]

CIT

✓ Exemption on financial services for qualified TIFC Participants (✘ digital assets)

9% rate, with a 0% rate on taxable income up to AED 375,000

0% rate can be applied to a Qualifying Free Zone Person (QFZP)

✓ Exemption on financial services for AIFC Participants (✘ digital assets)

✓ 100% CIT deduction on income from export of financial services until 2047

✓ Exemption on “Additional” services (audit, other) for TIFC Participants

✓ Exemption for auditing as well as accounting, legal, consulting services rendered to AIFC Bodies / Participants (financial services providers)

✓ Additional incentives for qualifying treasury centers

VAT

✓ Exemption on all services of TIFC Participants

5% rate 0% rate or exemption may apply to certain supplies, including financial services

✘✓ Exemption on financial services for AIFC Participants

✘ No specific IFC incentives (standard VAT rate: 20%)

PIT

✓ Exemption for non-resident employees of TIFC Bodies / Participants

✓ Exemption for investment resident on non-uzbek sourced income

-

✓ Exemption for non-resident employees of AIFC Bodies/ Participants

✓ Exemption for investment resident on non-kazakh sourced income

✘✓ 60%- 80% of income exempt from PIT for qualified foreign workers

Capital gain (CIT/PIT)

✓ Exemption on securities listed on Stock Exchange / shares of TIFC Participants

0% for QFZP / Participation Exemption

✓ Exemption on AIFC-listed securities / shares of AIFC Participants

✘ No specific IFC incentives (general Turkish tax rules apply; generally 25% CIT or up to 40% PIT)

Dividends (CIT/PIT)

✓ Exemption on dividends from securities listed on Stock Exchange / shares of TIFC Participants

0% for QFZP / Participation Exemption

✓ Exemption on dividends from AIFC-listed securities/shares of AIFC Participants

✘ No specific IFC incentives (general Turkish tax rules apply; dividend distributions are generally subject to 15% WHT)

Property and land tax

✓ Exemption on facilities of TIFC Bodies / Participants within TIFC

-

✓ Exemption on facilities of AIFC Bodies / Participants within AIFC

✘ No specific IFC incentives (general property tax rules apply; generally 0.1%-0.6%)

RC VAT

✓ Services to TIFC Bodies / Participants are not considered a VAT turnover

5% 0% rate or exemption may apply to certain supplies

✓ Services to AIFC Bodies / Organizations are not considered a VAT turnover

✘ No specific IFC incentives (general Turkish VAT rules apply; standard rate 20%)

Customs duties

✓ Exemption from customs duties and fees on goods imported for use or consumption within the TIFC

✓ Goods imported, produced, stored, or used within DIFC are exempt from customs duties

✘ No specific incentives for AIFC Customs duties applied in accordance with the EAEU customs regulations

✘ No specific incentives for IFC

Duration

January 2076 for tax and customs incentives, ! No specific end date for VAT, RC VAT, property and land tax

-

January 2066, No specific end dates for VAT, RC VAT, property and land tax

Different duration dates

Conditions to apply

− Registration as TIFC Participant

− Licensing requirements for financial services

− etc.

QFZP conditions:

− Derives qualifying income

− Complies with de minimis requirements

− Maintains adequate substance in FZ

− Has not elected to be subject to CT

− Complies with TP requirements

− Has prepared audited financial report

If any of conditions are not met during the tax period, taxable person shall cease to be a QFZP from the beginning of the tax period and for the next 4 tax periods

Substantial Presence Rules:

− May apply to certain AIFC tax exemption

− CIGA (or core-income generating activities) carried out in the AIFC

− Adequate operating expenses and qualified personnel

− IFC Participant Certificate

− Physical presence within the IFC

− Compliance with applicable substance requirements

− Provision of qualifying services to non-residents where required