Do UAE free-zone companies pay corporate tax?
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Build my estimate →Get a quote on WhatsApp →By the Formenzo Research Desk · compare all 9 zones
What every free-zone company must do regardless of rate
Register with the Federal Tax Authority via EmaraTax by the deadline tied to your licence (late registration carries a AED 10,000 administrative penalty), file a corporate-tax return within nine months of the financial year-end, and keep records — audited statements if claiming QFZP status — for at least seven years.
How to read the QFZP rules
QFZP treatment depends on the full facts: qualifying activities and income, adequate substance, transfer-pricing compliance, audited financial statements, no election into standard rates, and the de-minimis test. Customer geography alone does not determine the result.
Two rate paths
A standard Taxable Person is 0% up to AED 375,000 of taxable income and 9% above it. A QFZP is 0% on qualifying income and 9% on taxable income that is not qualifying, without the AED 375,000 standard band. QFZPs cannot elect Small Business Relief.
Most free-zone juridical persons should check their registration and filing obligations with the FTA. This is general information, not tax advice.