Free Zone Corporate Tax in the UAE

Being in a UAE free zone does not make a company exempt from Corporate Tax. Free zone companies must register and file like other businesses. A company that meets the conditions of a Qualifying Free Zone Person (QFZP) can benefit from a 0% rate on qualifying income, while its other income is taxed at the standard rate.

How the rates work

• Qualifying income of a QFZP: 0%
• Non-qualifying income of a QFZP: 9%
• Free zone company that is not a QFZP: the standard regime, with 0% on taxable income up to AED 375,000 and 9% above that

Main conditions to be a QFZP

• Adequate substance in the free zone, such as staff, assets and premises
• Earning qualifying income from qualifying activities
• Meeting the de minimis limit on non-qualifying revenue
• Complying with the transfer pricing rules
• Not electing to be taxed under the standard regime
• Preparing audited financial statements

How we help

• Assessing whether your company can qualify and whether it is worth it
• Classifying your income as qualifying or non-qualifying
• Registering for Corporate Tax and preparing and filing the return
• Preparing the accounts and coordinating with your auditor

We support free zone companies across all UAE emirates, and the position can change if your activities or income mix change.

Related: Corporate Tax registration in the UAE | Corporate Tax guide 2026 | Tax services in Dubai | Contact us

This page is general information, not advice on your particular facts. Rules and time limits can change, so contact us and we will check your position with the FTA requirements.