VERIFIED 2026 · FORMENZO
What is a Qualifying Free Zone Person (QFZP)?
A UAE free-zone company is not automatically tax-free. A QFZP is 0% only on qualifying income and 9% on taxable income that is not qualifying, without the AED 375,000 standard band. A free-zone company that is not a QFZP follows the standard 0% up to AED 375,000 of taxable income and 9% above it. A QFZP cannot elect Small Business Relief.
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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.
