Tax · 2026
UAE corporate tax for free zones in 2026: the QFZP guide
UAE corporate tax applies to free-zone companies, but a Qualifying Free Zone Person (QFZP) keeps 0% on qualifying income while other income is taxed at 9% above AED 375,000. Every company must register, even one expecting to pay 0%. Keeping the 0% depends on meeting the QFZP conditions and filing correctly.
Accuracy note: Rules and thresholds are set by the Federal Tax Authority and can change. Confirm current details with the FTA or a tax adviser. Verify figures before publishing.
Do free-zone companies really pay corporate tax?
The headline "0% for free zones" is only half the story. Free-zone companies must register for corporate tax like everyone else. The 0% is a rate on qualifying income for companies that meet the QFZP conditions — not an exemption from registering or filing.
What makes you a Qualifying Free Zone Person?
Broadly, a QFZP maintains real substance in the UAE, earns qualifying income, keeps within limits on non-qualifying income, meets transfer-pricing rules, and doesn't elect to be taxed at the standard rate. Miss these and you can lose the 0% on all your income for the period.
0% vs 9%: the simple version
- Qualifying income for a QFZP: 0%.
- Taxable income up to AED 375,000: 0%.
- Taxable income above that: 9%.
How to protect your 0%
Structure your activities around qualifying income, keep genuine substance, maintain clean books, and file on time. This is why the way you set up matters from day one. Our corporate tax service handles registration and structuring, and good bookkeeping keeps your records audit-ready.
What to do next
If you're setting up, read the SPC guide and factor tax into your structure early. If you're already trading, register if you haven't, and get your bookkeeping in order before your filing deadline.
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