Financial audit
Annual audited financial statements, required for renewal at many freezones.
AED 6,300 per year, VAT included
Full price listQFZP eligibility · UAE Corporate Tax
QFZP Eligibility Test: Do You Still Qualify for 0%?
A free zone licence alone won't get you 0%. The 0% rate belongs to a Qualifying Free Zone Person, and only on qualifying income. Miss one condition and the standard 9% applies. Take the two-minute test and see exactly where you stand.
- conditions tested
- 9
- to your result
- 2 min
- what's at stake
- 0% vs 9%
The de minimis trap
The cap is the lower of AED 5m or 5% of revenue.
- Revenue
- AED20,000,000
- Real ceiling
- AED1,000,000
- Mainland billing
- AED2,000,000
Under the AED 5m headline, and still over the real cap by double. That is five years at 9%.
What decides whether you keep the 0% rate
Free zone status is tested every tax period, not just at setup. Each condition has to hold. Miss one and that income moves to the standard 9%.
Nine questions to your QFZP standing
Pick the option closest to your reality. Your standing builds as you go.
01 / 09 Juridical person
How is your business legally set up?
Think about the entity on the licence, not how you describe the business.
The rules, in plain language
- on qualifying income for a Qualifying Free Zone Person
- 0%
- standard rate on taxable income above AED 375,000
- 9%
- de minimis cap on non-qualifying revenue, whichever is lower
- 5% / AED 5m
- out of QFZP status after failing a condition
- 5 years
Which activities can qualify
- Transactions with natural persons (with limited exceptions)
- Regulated banking activities
- Regulated insurance activities (other than reinsurance)
- Regulated finance and leasing (other than those listed as qualifying)
- Ownership or exploitation of UAE immovable property (other than commercial property with free zone persons)
- Activities ancillary to any of the above
This tool is an indicative self-check, not tax advice. QFZP rules are fact specific and turn on the detail of your activities, income and structure. Federal Decree-Law No. 47 of 2022, Cabinet Decision No. 100 of 2023, Ministerial Decision No. 229 of 2025 and Ministerial Decision No. 84 of 2025 govern the regime. Confirm your position with a qualified adviser before filing.
Not sure you'd pass? Let's check it properly.
A free, no-obligation review with our corporate tax team. If you already qualify, that is the answer you will get.
Accounting package: SME
Up to 120 transactions a year on Zoho Books, quarterly accounts, and VAT and Corporate Tax registration and filing.
Accounting & BookkeepingFrequently asked questions
Anything else? Ask on WhatsApp or book a free 15-minute call.
Does a free zone company pay 0% corporate tax in the UAE?
Only on its qualifying income, and only while it meets every condition of Article 18 of Federal Decree-Law No. 47 of 2022. A free zone address on its own changes nothing. Income that is not qualifying income is taxed at 9%, and a company that fails any condition loses the 0% rate on everything.
What is the de minimis threshold for a QFZP?
Non-qualifying revenue must not exceed the lower of AED 5,000,000 or 5% of total revenue. The word lower is the one that catches people. A company turning over AED 20 million has a ceiling of AED 1 million, not 5, because 5% of its revenue is the smaller of the two figures.
What happens if we fail one of the conditions?
The company stops being a Qualifying Free Zone Person from the start of that tax period and stays out of the regime for the four tax periods after it. That is five years at 9%, triggered by one condition in one year, which is why the arithmetic is worth checking before the year closes rather than after.
Do we need audited accounts to keep the 0% rate?
Yes. Audited financial statements are a condition in their own right: Ministerial Decision No. 229 of 2025 makes them one, and Ministerial Decision No. 84 of 2025 requires every Qualifying Free Zone Person to prepare them, whatever its revenue. A company with perfect substance and no audit does not qualify.
Can we sell to mainland customers and stay qualifying?
Yes, within limits. Revenue from a customer outside the free zones, on the mainland or abroad, qualifies only when it comes from a qualifying activity, such as manufacturing or logistics services. Everything else counts toward the de minimis ceiling, and above the ceiling the exemption goes, which is why the mainland side of a free zone business is worth measuring rather than estimating.
Prefer to talk it through?
Talk it through with a specialist on a free 15-minute call, or message us on WhatsApp. We reply within 2 to 4 hours.
OMC is a reliable and professional company in the UAE. Their team is knowledgeable, responsive, and always willing to help. The quality of their service exceeded my expectations, and the entire experience was smooth from start to finish. Highly recommended.