Corporate Tax
Reviews that protect your 0% rate as a Qualifying Free Zone Person, covering qualifying income, de minimis limits, substance and audit.
Free Zone companies can pay 0% Corporate Tax on qualifying income, but only if they meet every condition to be a Qualifying Free Zone Person. Failing one condition means losing the benefit for the current year and the following four. We test your activities, income and substance against the rules so you know where you stand.
Protect the 0% rate
Issues are caught before they cost you five years of Free Zone benefits.
Clear income split
Every revenue stream is classified and documented for your return.
Audit-ready
Your accounts, transfer pricing and substance evidence support each other.
Plan with confidence
Know how new customers or activities would affect your status before you take them on.
In-depth guide
01The conditions you must meet
To be a Qualifying Free Zone Person, a company must maintain adequate substance in the Free Zone, earn qualifying income, meet the de minimis requirements, comply with transfer pricing rules, prepare audited financial statements and not elect to be taxed at the standard rates.
These are tested every tax period. A company that met them last year can fail this year simply because its customer mix changed.
02Qualifying and non-qualifying income
Income is generally qualifying when it comes from transactions with other Free Zone persons, or from qualifying activities and specified transactions with any person. Income from excluded activities, such as most transactions with natural persons, and income attributable to a domestic or foreign permanent establishment, is not.
We go through each revenue stream, classify it and document the reasoning, so the split in your return is supported if questioned.
03Substance and evidence
Adequate substance means the core income-generating activities are carried out in the Free Zone, with enough qualified staff, assets and operating expenditure for the size of the business. Outsourcing is possible but must be within the Free Zone and adequately supervised.
We help you assemble the evidence, including employment records, lease agreements and board minutes, so your position stands up to an FTA review.
- 1
Activity mapping
We match your licensed and actual activities to the qualifying lists.
- 2
Revenue analysis
We classify every income stream and run the de minimis test.
- 3
Substance check
We review staff, premises, spending and transfer pricing evidence.
- 4
Report and file
We share our conclusions, fix gaps and file your return with QFZP disclosures.
No. Only Qualifying Free Zone Persons pay 0%, and only on qualifying income. Non-qualifying income is taxed at 9%, and a company that fails the conditions is taxed at the standard rates on all its income.
Corporate Tax
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