Free Zone Special

Do Free Zones Pay
Corporate Tax?

The simple answer: Yes, but possibly at 0%.

To benefit from the 0% rate, you must be a "Qualifying Free Zone Person" (QFZP) and earn "Qualifying Income". Failing the requirements triggers the standard 9% rate.

1

Maintain Adequate Substance

You must have staff and assets in the Free Zone.

2

Derive Qualifying Income

Income from other free zone persons or specific activities.

Run Free Zone Eligibility Test
2026 Rules

Projected Assessment

Scenario A
Selling Goods to Mainland UAE
warning Taxable at 9%
Scenario B
Services to Other Free Zone Company
check_circle 0% Tax (Qualifying)