FTA Cabinet Decision No. 100 of 2023 Compliant
UAE Corporate Tax QFZP (0% Free Zone) Guide
Authoritative handbook on Qualified Free Zone Person (QFZP) status — 0% corporate tax rules, qualifying vs non-qualifying income, De Minimis 5% calculation, and audited financial statements.
QFZP De Minimis 5% Status Evaluator
Evaluate whether your Free Zone entity's non-qualifying revenue satisfies the De Minimis threshold.
Must be ≤ 5% of total revenue or ≤ AED 5,000,000
Qualifies for 0% Free Zone Corporate Tax Rate
Non-qualifying revenue (3%) is within the allowable 5% De Minimis threshold. 0% tax applies on all Qualifying Income.
Statutory Requirement: File annual tax return with audited financial statements.
Frequently Asked Questions
A QFZP is a Free Zone entity that meets FTA conditions (adequate substance in UAE, derives qualifying income, complies with transfer pricing rules, prepares audited financials, and satisfies the De Minimis requirement) to benefit from a 0% Corporate Tax rate.
Under Cabinet Decision No. 100 of 2023, non-qualifying revenue must not exceed 5% of total revenue or AED 5,000,000 (whichever is lower).
Yes. Maintaining audited financial statements prepared in accordance with IFRS is a mandatory statutory requirement to claim QFZP 0% status.
If a Free Zone entity fails QFZP requirements or elects to be subject to standard tax, it will be taxed at 9% on taxable income exceeding AED 375,000 for that year and the subsequent 4 tax years.