Compliance · 2026
Corporate tax registration for UAE free-zone companies
Every UAE company, including free-zone companies, must register for corporate tax. A Qualifying Free Zone Person (QFZP) can keep a 0% rate on qualifying income, while non-qualifying income is taxed at 9% above the AED 375,000 threshold. Keeping the 0% depends on meeting the QFZP conditions and filing correctly.
Accuracy note: UAE corporate tax rules and thresholds are set by the Federal Tax Authority (FTA) and can change. This page is general guidance — confirm current rules with the FTA or a tax adviser before filing. Verify all figures and deadlines before publishing.
Who must register?
All UAE businesses within scope must register for corporate tax and obtain a tax registration number, even if they expect to pay 0%. Free-zone companies are not exempt from registration — the 0% QFZP rate is a rate on qualifying income, not a pass on registering or filing.
What is a Qualifying Free Zone Person (QFZP)?
A QFZP is a free-zone company that meets specific conditions and so keeps 0% corporate tax on its qualifying income. Broadly, the conditions include maintaining adequate substance in the UAE, earning qualifying income, not electing to be taxed at the standard rate, meeting transfer-pricing rules, and staying within limits on non-qualifying income.
0% vs 9%: how the rates work
| Situation | Rate |
|---|---|
| QFZP — qualifying income | 0% |
| Taxable income up to AED 375,000 | 0% |
| Taxable income above AED 375,000 | 9% |
| Non-qualifying income (QFZP breach) | 9% |
How to keep your 0% rate
- Set up your activities and income streams to fit the qualifying-income rules.
- Maintain real substance in the UAE — people, premises, and decisions.
- Keep proper books and meet transfer-pricing documentation requirements.
- Register on time and file your return each year.
This is exactly why setup structure matters from day one — see the SPC guide and company formation.
Deadlines & penalties
Registration and filing deadlines depend on your licence issue date and financial year. Missing them brings penalties. We track the dates that apply to your company so you don't miss a filing.
How we help
We handle corporate tax registration, help structure your company to protect QFZP status where possible, and connect ongoing bookkeeping so your returns are clean. Pair this with e-invoicing readiness for the full 2026 picture.
FAQ
Corporate tax questions
Do free-zone companies pay corporate tax?
They must register, but a Qualifying Free Zone Person keeps 0% on qualifying income. Non-qualifying income is taxed at 9% above the threshold.
Do I need to register even if I'll pay 0%?
Yes. Registration is mandatory regardless of the rate you expect to pay, and you still file an annual return.
What could make me lose QFZP status?
Exceeding the limits on non-qualifying income, failing the substance or transfer-pricing rules, or electing standard rates can end QFZP status. Good structure and bookkeeping protect it.