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सामग्री पर जाएँ

अनूदित पृष्ठ। यह पृष्ठ अंग्रेज़ी संस्करण का अनुवाद है। अंतर होने पर अंग्रेज़ी संस्करण मान्य होगा। आधिकारिक आवश्यकताएँ यूएई के संघीय व अमीरात प्राधिकरण और फ्री-ज़ोन रजिस्ट्री तय करते हैं, और कई मूल दस्तावेज़ अरबी में प्रकाशित होते हैं — कार्रवाई से पहले हमेशा मूल स्रोत देखें या हमसे पूछें।

Guide

Qualifying Free Zone Person explained

The short answer

A Qualifying Free Zone Person is a free-zone entity that meets all the conditions set out in the UAE corporate tax rules and can therefore apply a 0% rate to qualifying income. Non-qualifying income is taxed at standard rates, and failing a condition can cost the status for the relevant tax period and following periods.

This is the single most misrepresented topic in UAE setup marketing. 'Free zone means 0% tax' is not accurate.

The status is conditional, tested against your actual operations, and should be assessed with a tax adviser before you rely on it.

The conditions in outline

  • The entity must maintain adequate substance in the free zone.
  • Its income must be qualifying income as defined in the rules.
  • It must not have elected to be subject to standard corporate tax.
  • It must comply with transfer-pricing rules and documentation requirements.
  • It must meet the de minimis requirement for non-qualifying revenue.
  • It must prepare audited financial statements.

Qualifying vs non-qualifying income

Whether income qualifies depends on the activity and the counterparty, including how transactions with mainland UAE persons are treated. Excluded activities are defined in the rules, and income from them is not qualifying income.

Losing the status

Common ways the status is put at risk.

  • Substance in name only

    Why it matters
    Adequate substance is a condition, not a formality

  • Non-qualifying revenue above the de minimis

    Why it matters
    Breaching it can cost the status

  • No audited financial statements

    Why it matters
    An explicit requirement of the regime

  • Weak transfer-pricing documentation

    Why it matters
    Related-party dealings must be documented
Office towers and the Gate building in Dubai International Financial Centre

General guidance here; the detail that matters depends on your activity and markets.

Questions

Frequently asked

Is every free-zone company a QFZP?
No. It is a status that depends on meeting all the applicable conditions in the corporate tax rules.
What happens if I lose the status?
The entity is taxed under the standard rules for the relevant period, and the rules can affect subsequent periods too.
Can you confirm whether I qualify?
We flag the conditions and coordinate with your tax adviser. We do not issue tax opinions.

Next

Related reading

UAE corporate tax for new businesses

Free zone vs mainland

Tax and compliance

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This page is general information about UAE business setup, not legal, tax, immigration, or banking advice. Rules, fees, permitted activities, and bank policies can change. Final eligibility depends on your facts and the applicable rules at the time of application.

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