{"id":18053,"date":"2026-10-06T09:21:08","date_gmt":"2026-10-06T02:21:08","guid":{"rendered":"https:\/\/investinasia.com\/blog\/?p=18053"},"modified":"2026-10-06T09:21:08","modified_gmt":"2026-10-06T02:21:08","slug":"uae-free-zone-qualifying-income","status":"publish","type":"post","link":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/","title":{"rendered":"Qualifying Free Zone Person in the UAE: What Income Qualifies for 0% Corporate Tax?"},"content":{"rendered":"<p>A UAE free zone licence does not automatically make company profits tax free. A <strong>Qualifying Free Zone Person<\/strong>, or QFZP, receives the 0% Corporate Tax rate only on Qualifying Income while it continues to meet the applicable UAE conditions.<\/p>\n<p>As of 6 October 2026, the result depends on the customer, the activity that earns the revenue, the income category, and where the relevant activity is performed. A mainland customer does not automatically make income taxable at 9%, although many ordinary services supplied to Non-Free Zone Persons fall outside the Qualifying Activities list.<\/p>\n<p>The practical task is to classify each revenue stream before invoicing, then retain evidence that supports the classification. The examples and decision framework below show how to approach that review.<\/p>\n<div style=\"background: #f8f9fa; border-left: 4px solid #223666; border-radius: 0 8px 8px 0; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"font-weight: bold; margin: 0 0 10px 0; color: #223666;\">Key Takeaways<\/p>\n<ul style=\"margin: 0; padding-left: 20px; line-height: 1.8;\">\n<li>A QFZP is subject to 0% Corporate Tax on Qualifying Income and 9% on taxable income that is not Qualifying Income.<\/li>\n<li>The ordinary 0% band on the first AED 375,000 of taxable income does not apply to a QFZP&#8217;s non-qualifying taxable income.<\/li>\n<li>Income from mainland or overseas business customers can qualify when it arises from a listed Qualifying Activity and is not an Excluded Activity.<\/li>\n<li>Non-qualifying revenue must remain within the lower of 5% of total revenue or AED 5 million for the relevant Tax Period.<\/li>\n<li>Failing a QFZP condition can remove QFZP status from the beginning of that Tax Period and for the following four Tax Periods.<\/li>\n<\/ul>\n<\/div>\n<h2>How the 0% Free Zone Rate Works<\/h2>\n<p>Federal Decree-Law No. 47 of 2022 gives a QFZP two Corporate Tax rates. Qualifying Income is subject to 0%, while taxable income that is not Qualifying Income is subject to 9%.<\/p>\n<p>This is an income classification regime. A company can hold a valid free zone licence yet fail the QFZP conditions or earn revenue that falls outside Qualifying Income.<\/p>\n<p>The Federal Tax Authority&#8217;s Free Zone Persons Corporate Tax Guide also explains that a QFZP cannot apply the ordinary 0% rate on the first AED 375,000 to its non-qualifying taxable income.<\/p>\n<h2>Which Conditions a QFZP Must Meet<\/h2>\n<p>A Free Zone Person must satisfy the applicable QFZP conditions throughout the Tax Period. Article 18 of Federal Decree-Law No. 47 of 2022, together with the implementing decisions, requires the company to meet several tests.<\/p>\n<ul>\n<li>Be a juridical person incorporated, established, or registered in a UAE free zone.<\/li>\n<li>Maintain adequate substance in the UAE.<\/li>\n<li>Derive Qualifying Income.<\/li>\n<li>Not elect to be taxed under the ordinary Corporate Tax regime.<\/li>\n<li>Apply the arm&#8217;s-length principle and meet applicable transfer pricing documentation requirements.<\/li>\n<li>Keep non-qualifying revenue within the de minimis requirement.<\/li>\n<li>Prepare and maintain audited financial statements.<\/li>\n<\/ul>\n<p>Ministerial Decision No. 84 of 2025 specifically requires a Qualifying Free Zone Person to prepare and maintain audited financial statements. The broader AED 50 million revenue threshold that applies to certain other Taxable Persons does not remove that QFZP requirement.<\/p>\n<h2>Which Activities Are Qualifying or Excluded<\/h2>\n<p>Ministerial Decision No. 229 of 2025 is the current source for the Qualifying Activities and Excluded Activities list. The Decision repealed Ministerial Decision No. 265 of 2023, so the current classification should be checked against Decision No. 229 rather than an older summary.<\/p>\n<h3>Qualifying Activities Under the Current Decision<\/h3>\n<p>Ministerial Decision No. 229 of 2025 lists the following activities as Qualifying Activities, subject to their detailed definitions and conditions:<\/p>\n<ul>\n<li>Manufacturing goods or materials.<\/li>\n<li>Processing goods or materials.<\/li>\n<li>Trading Qualifying Commodities.<\/li>\n<li>Holding shares and other securities for investment purposes.<\/li>\n<li>Owning, managing, and operating ships.<\/li>\n<li>Reinsurance services.<\/li>\n<li>Fund management services.<\/li>\n<li>Wealth and investment management services.<\/li>\n<li>Headquarters services to Related Parties.<\/li>\n<li>Treasury and financing services to Related Parties or for the company&#8217;s own account.<\/li>\n<li>Financing and leasing aircraft, including engines and rotable components.<\/li>\n<li>Distributing goods or materials in or from a Designated Zone.<\/li>\n<li>Logistics services.<\/li>\n<li>Activities ancillary to a listed Qualifying Activity.<\/li>\n<\/ul>\n<p>Each category has a technical definition. Logistics services, for example, generally involve storing, transporting, handling, or managing another Person&#8217;s goods without taking title to those goods. A company that purchases inventory and resells it normally needs to test the separate distribution rules instead.<\/p>\n<p>Businesses evaluating production structures can compare these rules with InvestinAsia&#8217;s guide to <a href=\"https:\/\/investinasia.com\/blog\/manufacturing-in-dubai\/\">manufacturing operations in Dubai<\/a>. Companies moving, storing, or reselling goods should also distinguish <a href=\"https:\/\/investinasia.com\/blog\/dubai-logistics-industry\/\">Dubai logistics and distribution models<\/a>.<\/p>\n<h3>Excluded Activities Under the Current Decision<\/h3>\n<p>Ministerial Decision No. 229 of 2025 also identifies activities that are excluded from the standard Qualifying Activity treatment.<\/p>\n<ul>\n<li>Transactions with natural persons, subject to specified exceptions for certain ship, fund management, wealth management, and aircraft activities.<\/li>\n<li>Banking activities.<\/li>\n<li>Insurance activities other than the stated exceptions for qualifying reinsurance and headquarters activities.<\/li>\n<li>Finance and leasing activities outside the specified Qualifying Activity exceptions.<\/li>\n<li>Ownership or exploitation of immovable property, except qualifying transactions involving Commercial Property in a Free Zone with another Free Zone Person.<\/li>\n<li>Activities ancillary to an Excluded Activity.<\/li>\n<\/ul>\n<p>The activity name shown on a trade licence does not settle the Corporate Tax result by itself. Contracts, invoices, customer status, operating records, and the actual activity generating the income must support the position taken.<\/p>\n<h2>How to Test a Revenue Stream<\/h2>\n<p>The correct classification starts with the transaction rather than the company&#8217;s licence label. Cabinet Decision No. 100 of 2023 distinguishes income from transactions with Free Zone Persons from income earned from Non-Free Zone Persons.<\/p>\n<p>For a transaction with another Free Zone Person, that customer must be the Beneficial Recipient of the relevant goods or services, and the income cannot arise from an Excluded Activity.<\/p>\n<p>For a mainland or foreign customer, the income generally needs to arise from a listed Qualifying Activity and cannot arise from an Excluded Activity. The customer&#8217;s address alone is therefore insufficient to determine the tax result.<\/p>\n<div style=\"overflow-x: auto;\">\n<table>\n<thead>\n<tr>\n<th>Customer or Income Source<\/th>\n<th>Core Test<\/th>\n<th>Potential Treatment<\/th>\n<th>Evidence to Keep<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Another Free Zone Person<\/td>\n<td>The customer is the Beneficial Recipient and the activity is not excluded.<\/td>\n<td>The income can be Qualifying Income if all QFZP conditions are met.<\/td>\n<td>Licence, customer declaration, contract, invoice, and delivery evidence.<\/td>\n<\/tr>\n<tr>\n<td>Mainland or Foreign Business<\/td>\n<td>The income arises from a listed Qualifying Activity and not from an Excluded Activity.<\/td>\n<td>The income can be Qualifying Income. Mainland sales are not automatically taxed at 9%.<\/td>\n<td>Contract, activity analysis, customer profile, operational records, and location evidence.<\/td>\n<\/tr>\n<tr>\n<td>Mainland or Foreign Customer for a Non-Listed Service<\/td>\n<td>The service does not fall within a Qualifying Activity.<\/td>\n<td>The revenue is generally non-qualifying and enters the de minimis calculation.<\/td>\n<td>Separate ledger code, contract, invoice, and allocation support.<\/td>\n<\/tr>\n<tr>\n<td>Natural Person<\/td>\n<td>Check whether one of the statutory exceptions applies.<\/td>\n<td>The transaction is generally an Excluded Activity if no exception applies.<\/td>\n<td>Customer status, service description, and exception analysis.<\/td>\n<\/tr>\n<tr>\n<td>Qualifying Intellectual Property<\/td>\n<td>Apply the prescribed nexus formula and trace qualifying research and development expenditure.<\/td>\n<td>Only the amount produced by the applicable formula can qualify.<\/td>\n<td>Asset register, ownership records, expenditure tracing, and formula workpapers.<\/td>\n<\/tr>\n<tr>\n<td>Permanent Establishment, Certain Property, or Non-Qualifying Intellectual Property<\/td>\n<td>Apply the specific rules for that income category.<\/td>\n<td>The income follows its separate tax treatment rather than being treated simply as ordinary de minimis revenue.<\/td>\n<td>Segmented accounts, attribution analysis, property records, and tax workpapers.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div style=\"background: #d5e6e5; border-left: 4px solid #223666; border-radius: 0 8px 8px 0; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"font-weight: bold; margin: 0 0 8px 0; color: #223666;\">Notes from InvestinAsia Consultants<\/p>\n<p style=\"margin: 0; color: #333;\">Build the revenue map at invoice level. Record the customer type, Beneficial Recipient status where relevant, activity, operating location, income category, contract, and ledger code so the year-end tax analysis can be traced back to actual transactions.<\/p>\n<\/div>\n<p>Mixed customer types and operating locations can affect which entity, licence, and accounting treatment should carry the revenue. For foreign founders who want those decisions coordinated before transactions begin, InvestinAsia&#8217;s <a href=\"https:\/\/investinasia.com\/ae\/\">Dubai and UAE market entry services<\/a> can connect the setup scope with the operational and compliance requirements that follow.<\/p>\n<div style=\"background: #d5e6e5; border: 2px solid #223666; border-radius: 8px; padding: 20px 24px; margin: 32px 0; text-align: center;\">\n<p style=\"margin: 0 0 8px 0; font-size: 16px; font-weight: bold; color: #223666; text-align: center;\">Classify Revenue Before the Tax Position Becomes Harder to Fix<\/p>\n<p style=\"margin: 0 0 16px 0; color: #333; text-align: center;\">Review the operating structure, customer mix, and compliance scope with InvestinAsia, the market entry arm of vOffice Group.<\/p>\n<div style=\"text-align: center;\"><a style=\"background: #223666; color: #fff; padding: 12px 28px; border-radius: 6px; text-decoration: none; font-weight: bold; display: inline-block;\" href=\"https:\/\/investinasia.com\/ae\/\">Explore UAE Market Entry Services<\/a><\/div>\n<div style=\"height: 15px;\"><\/div>\n<div style=\"text-align: center;\"><a style=\"background: #25D366; color: #fff; padding: 12px 28px; border-radius: 6px; text-decoration: none; font-weight: bold; display: inline-block;\" href=\"https:\/\/wa.me\/6285286124490?text=Hello!%20I%20would%20like%20to%20discuss%20QFZP%20status%20and%20qualifying%20income%20for%20my%20UAE%20free%20zone%20company.%0A%0ASource%3A%20article%20%22Qualifying%20Free%20Zone%20Person%20in%20the%20UAE%3A%20What%20Income%20Qualifies%20for%200%25%20Corporate%20Tax%3F%22%20%28SEO%29\" target=\"_blank\" rel=\"noopener nofollow\">Chat with Our Team on WhatsApp<\/a><\/div>\n<\/div>\n<h2>How Mainland Sales Are Treated<\/h2>\n<p>A mainland buyer is a Non-Free Zone Person, so the QFZP must test whether the income comes from a Qualifying Activity listed in Ministerial Decision No. 229 of 2025.<\/p>\n<p>A manufacturer selling qualifying output to a mainland business may generate Qualifying Income if the relevant activity and all other QFZP conditions are satisfied. An ordinary consultancy supplying the same mainland buyer is not itself one of the listed Qualifying Activities, so that revenue will generally be non-qualifying unless another rule applies.<\/p>\n<p>This tax analysis should also be separated from the commercial question of whether the company is appropriately structured to serve the UAE market. InvestinAsia&#8217;s comparison of <a href=\"https:\/\/investinasia.com\/blog\/free-zone-vs-mainland-in-dubai\/\">free zone and mainland structures in Dubai<\/a> explains the broader operating differences.<\/p>\n<p>Distribution has additional conditions. Ministerial Decision No. 229 of 2025 requires qualifying distribution to be conducted in or from a Designated Zone. The goods must be supplied to a customer that resells, processes, or alters them for sale or resale, or to a public benefit entity. Where goods enter the UAE, the applicable import conditions must also be tested.<\/p>\n<p>The Federal Tax Authority&#8217;s October 2026 TAXP010 clarification also distinguishes Corporate Tax Free Zones and Designated Zones from VAT and Excise Tax Designated Zones. A business should therefore confirm the applicable tax status of its location rather than assuming that one designation automatically establishes another.<\/p>\n<h2>How the De Minimis Test Works<\/h2>\n<p>Ministerial Decision No. 229 of 2025 sets the de minimis limit at the lower of 5% of total revenue or AED 5 million for the relevant Tax Period.<\/p>\n<p>Certain revenue categories are treated separately when calculating the threshold, including revenue attributable to a Domestic Permanent Establishment, Foreign Permanent Establishment, specified immovable property, and non-qualifying intellectual property. Those categories should be analysed under their own rules.<\/p>\n<p>Consider a hypothetical company with AED 20 million of revenue after the applicable statutory exclusions and AED 800,000 of non-qualifying revenue. Five percent of AED 20 million is AED 1 million. Because AED 1 million is lower than AED 5 million, the company&#8217;s de minimis ceiling is AED 1 million, and AED 800,000 remains within that limit.<\/p>\n<p>If non-qualifying revenue were AED 1.2 million instead, the company would exceed its AED 1 million de minimis ceiling. Under Ministerial Decision No. 229 of 2025, failing the applicable QFZP conditions can cause the company to cease being a QFZP from the beginning of that Tax Period and for the subsequent four Tax Periods.<\/p>\n<p>Passing the threshold does not remove the need for reliable records. The company still needs a defensible basis for each amount included in or excluded from the calculation.<\/p>\n<h2>What Adequate Substance Requires<\/h2>\n<p>A QFZP must conduct its core income-generating activities in the location required by the Corporate Tax rules and maintain adequate assets, qualified full-time employees, and operating expenditure in relation to those activities.<\/p>\n<p>Outsourcing can be permitted in relevant circumstances, but the location rules still matter and the QFZP must adequately supervise the outsourced activity. Qualifying Intellectual Property has additional rules for expenditure and outsourcing that should be reviewed separately.<\/p>\n<p>There is no universal employee count or expenditure amount that automatically proves adequate substance for every business. The analysis depends on the nature and scale of the activity, which means a free zone licence, flexi-desk, or registered address alone does not establish the complete substance position.<\/p>\n<h2>Which Reporting and Evidence Rules Apply<\/h2>\n<p>A QFZP remains a Taxable Person. It must meet its Corporate Tax registration, recordkeeping, return filing, and payment obligations even when some of its income qualifies for the 0% rate.<\/p>\n<p>Corporate Tax returns and payment are generally due within nine months after the end of the relevant Tax Period under the UAE Corporate Tax framework. Registration timing is a separate requirement. InvestinAsia&#8217;s <a href=\"https:\/\/investinasia.com\/blog\/uae-corporate-tax-registration\/\">UAE Corporate Tax registration guide<\/a> explains how registration deadlines differ by entity and incorporation circumstances.<\/p>\n<p>Transfer pricing rules also apply to relevant transactions with Related Parties and Connected Persons. The company should retain agreements, pricing support, allocation methodologies, customer evidence, activity records, and reconciliations between the revenue map and the audited financial statements.<\/p>\n<h3>Additional 2026 Procedures for Distributors<\/h3>\n<p>FTA Decision No. 6 of 2026 applies additional procedures to QFZPs carrying on the Qualifying Activity of distributing goods or materials in or from a Designated Zone for Tax Periods starting on or after 1 January 2026.<\/p>\n<p>The Decision requires an agreed-upon procedures report from an independent external auditor licensed in the UAE. The procedures examine whether customers meet the required reseller or processing conditions and whether goods entering the UAE were imported through a Designated Zone where that condition applies.<\/p>\n<p>Evidence can include customer licences, signed declarations, sales agreements, invoices, purchase orders, customs declarations, transport documents, inventory records, and warehouse records. FTA Decision No. 6 of 2026 requires the report to be submitted no later than 30 days after the Corporate Tax return filing deadline for the relevant Tax Period, unless another date is determined by the Authority.<\/p>\n<div style=\"background: #d5e6e5; border-left: 4px solid #223666; border-radius: 0 8px 8px 0; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"font-weight: bold; margin: 0 0 8px 0; color: #223666;\">Notes from InvestinAsia Consultants<\/p>\n<p style=\"margin: 0; color: #333;\">For a distribution model, collect customer declarations and customs evidence during the year rather than rebuilding the file after the return deadline. The audit procedure depends on transaction-level records that show both customer purpose and the movement of goods.<\/p>\n<\/div>\n<h2>How Common Business Models Compare<\/h2>\n<p>The QFZP analysis changes with the operating model because different activities, customers, assets, and evidence support different income classifications.<\/p>\n<div style=\"overflow-x: auto;\">\n<table>\n<thead>\n<tr>\n<th>Business Model<\/th>\n<th>Main QFZP Question<\/th>\n<th>Planning Priority<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Manufacturer in a Free Zone<\/td>\n<td>Does the income arise from manufacturing or processing, and is the activity supported by adequate substance?<\/td>\n<td>Trace production assets, employees, expenditure, customers, and sales contracts.<\/td>\n<\/tr>\n<tr>\n<td>Regional Distributor<\/td>\n<td>Is the company operating in or from a Designated Zone and supplying customers that meet the current distribution conditions?<\/td>\n<td>Verify zone status, customer purpose, goods movement, and the 2026 agreed-upon procedures requirement.<\/td>\n<\/tr>\n<tr>\n<td>Logistics Provider<\/td>\n<td>Does the company handle another Person&#8217;s goods without taking title?<\/td>\n<td>Align contracts and invoicing with the actual custody, storage, and transport model.<\/td>\n<\/tr>\n<tr>\n<td>Holding Company<\/td>\n<td>Are the shares and securities held for investment purposes under the current definition?<\/td>\n<td>Keep acquisition, holding-period, governance, and disposal records.<\/td>\n<\/tr>\n<tr>\n<td>Consultancy or Digital Agency<\/td>\n<td>Is the customer another Free Zone Person that is the Beneficial Recipient, or does another qualifying rule apply?<\/td>\n<td>Segment Free Zone and Non-Free Zone customers and monitor non-qualifying revenue.<\/td>\n<\/tr>\n<tr>\n<td>Intellectual Property Business<\/td>\n<td>Does the asset qualify, and what amount of income is produced by the prescribed nexus calculation?<\/td>\n<td>Trace research and development expenditure by asset and review outsourcing arrangements.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>The Federal Tax Authority&#8217;s May 2024 Free Zone Persons guide remains useful for understanding the broader mechanics of the regime. Its activity discussion predates Ministerial Decision No. 229 of 2025, so the current Ministerial Decision should control the current Qualifying Activity and Excluded Activity classification.<\/p>\n<h2>How to Prepare Before the First Invoice<\/h2>\n<p>A business can reduce classification problems by building its QFZP controls before revenue starts flowing rather than waiting until the Corporate Tax return is prepared.<\/p>\n<ol>\n<li>List each planned revenue stream and customer type.<\/li>\n<li>Match the actual activity to the current Qualifying Activity and Excluded Activity definitions.<\/li>\n<li>Confirm whether the operating model requires a Corporate Tax Designated Zone.<\/li>\n<li>Model the de minimis calculation under more than one sales scenario.<\/li>\n<li>Assign a separate ledger code to each material income category.<\/li>\n<li>Prepare customer declarations, contract wording, and operational evidence before transactions begin.<\/li>\n<li>Plan transfer pricing documentation, audited financial statements, registration, and filing dates.<\/li>\n<li>Recheck the classification when customers, contracts, activities, or operating locations change.<\/li>\n<\/ol>\n<p>The 0% result depends on operating facts that can change during the year. Connecting the revenue map to contracts, bookkeeping, customer evidence, and tax workpapers gives management a practical way to identify a problem before a threshold or QFZP condition is breached.<\/p>\n<div style=\"background: #223666; border-radius: 8px; padding: 24px; margin: 32px 0; text-align: center;\">\n<p style=\"margin: 0 0 6px 0; font-size: 18px; font-weight: bold; color: #fff; text-align: center;\">Build the QFZP Evidence File Before Year-End<\/p>\n<p style=\"margin: 0 0 20px 0; color: rgba(255,255,255,0.75); font-size: 14px; text-align: center;\">Coordinate your UAE structure and operating requirements through InvestinAsia so the setup reflects how the business will actually earn and document its revenue.<\/p>\n<div style=\"text-align: center;\"><a style=\"background: #fff; color: #223666; padding: 12px 32px; border-radius: 6px; text-decoration: none; font-weight: bold; display: inline-block;\" href=\"https:\/\/investinasia.com\/ae\/\">View UAE Market Entry Services<\/a><\/div>\n<div style=\"height: 15px;\"><\/div>\n<div style=\"text-align: center;\"><a style=\"background: #25D366; color: #fff; padding: 12px 28px; border-radius: 6px; text-decoration: none; font-weight: bold; display: inline-block;\" href=\"https:\/\/wa.me\/6285286124490?text=Hello!%20I%20would%20like%20to%20discuss%20QFZP%20status%20and%20qualifying%20income%20for%20my%20UAE%20free%20zone%20company.%0A%0ASource%3A%20article%20%22Qualifying%20Free%20Zone%20Person%20in%20the%20UAE%3A%20What%20Income%20Qualifies%20for%200%25%20Corporate%20Tax%3F%22%20%28SEO%29\" target=\"_blank\" rel=\"noopener nofollow\">Discuss Your QFZP Position on WhatsApp<\/a><\/div>\n<\/div>\n<div style=\"overflow-x: auto;\">\n<section><strong>References<\/strong><\/p>\n<ol>\n<li>United Arab Emirates Ministry of Finance. (2022). Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. Retrieved from<br \/>\nhttps:\/\/www.mof.gov.ae\/wp-content\/uploads\/2022\/12\/Federal-Decree-Law-No.-47-of-2022-EN.pdf<\/li>\n<li>United Arab Emirates Cabinet. (2023). Cabinet Decision No. 100 of 2023 on Determining Qualifying Income for the Qualifying Free Zone Person. Retrieved from<br \/>\nhttps:\/\/mofprod.mof.gov.ae\/wp-content\/uploads\/2023\/11\/Cabinet-Decision-No.-100-of-2023-on-Determining-Qualifying-Income-for-the-Qualifying-Free-Zone-Person.pdf<\/li>\n<li>United Arab Emirates Ministry of Finance. (2025). Ministerial Decision No. 229 of 2025 Regarding Qualifying Activities and Excluded Activities. Retrieved from<br \/>\nhttps:\/\/mof.gov.ae\/wp-content\/uploads\/2025\/09\/EN-Ministerial-Decision-No.-229-of-2025-Regarding-Qualifying-Activities-and-Excluded-Activities.pdf<\/li>\n<li>United Arab Emirates Ministry of Finance. (2025). Ministerial Decision No. 84 of 2025 on Audited Financial Statements. Retrieved from<br \/>\nhttps:\/\/www.mof.gov.ae\/wp-content\/uploads\/2025\/04\/Ministerial-Decision-No.-84-of-2025-on-Audited-Financial-Statements.pdf<\/li>\n<li>United Arab Emirates Federal Tax Authority. (2026). FTA Decision No. 6 of 2026 on Determining the Additional Procedures for the Compliance of Qualifying Free Zone Persons. Retrieved from<br \/>\nhttps:\/\/tax.gov.ae\/\/Datafolder\/Files\/Legislation\/2026\/FTA%20Decision%20No.%206%20of%202026%20on%20Determining%20the%20Additional%20Procedures%20for%20the%20Compliance%20of%20QFZP%20-%20for%20publishing%20-%2007%202026.pdf<\/li>\n<li>United Arab Emirates Federal Tax Authority. (2026, October 2). Free Zones and Designated Zones for Tax Purposes, TAXP010. Retrieved from<br \/>\nhttps:\/\/tax.gov.ae\/en\/content\/free.zones.and.designated.zones.for.tax.purposes.taxp010.aspx<\/li>\n<li>United Arab Emirates Federal Tax Authority. (2024). Free Zone Persons Corporate Tax Guide, CTGFZP1. Retrieved from<br \/>\nhttps:\/\/tax.gov.ae\/Datafolder\/Files\/Guides\/CT\/Free%20Zone%20Persons%20-%2020%2005%202024%20final%20for%20GCD.pdf<\/li>\n<\/ol>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A UAE free zone licence does not automatically make company profits tax free. A Qualifying Free Zone Person, or QFZP, receives the 0% Corporate Tax rate only on Qualifying Income &hellip; <\/p>\n","protected":false},"author":1,"featured_media":18055,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[84],"tags":[],"class_list":["post-18053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dubai"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>UAE Free Zone Qualifying Income: 0% Tax Guide 2026 | InvestinAsia<\/title>\n<meta name=\"description\" content=\"Learn which UAE free zone income may qualify for 0% Corporate Tax, how mainland sales are treated, and which QFZP records your company must keep.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UAE Free Zone Qualifying Income: 0% Tax Guide 2026 | InvestinAsia\" \/>\n<meta property=\"og:description\" content=\"Learn which UAE free zone income may qualify for 0% Corporate Tax, how mainland sales are treated, and which QFZP records your company must keep.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog - InvestinAsia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/web.facebook.com\/profile.php?id=100087885613500\" \/>\n<meta property=\"article:published_time\" content=\"2026-10-06T02:21:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2026\/10\/Qualifying-Free-Zone-Person-in-the-UAE.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"735\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Abi Mulya\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/\"},\"author\":{\"name\":\"Abi Mulya\",\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/#\\\/schema\\\/person\\\/de9104e81d54601d123d6f761c1677e4\"},\"headline\":\"Qualifying Free Zone Person in the UAE: What Income Qualifies for 0% Corporate Tax?\",\"datePublished\":\"2026-10-06T02:21:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/\"},\"wordCount\":2799,\"publisher\":{\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/Qualifying-Free-Zone-Person-in-the-UAE.webp\",\"articleSection\":[\"Dubai\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/\",\"url\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/\",\"name\":\"UAE Free Zone Qualifying Income: 0% Tax Guide 2026 | InvestinAsia\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/Qualifying-Free-Zone-Person-in-the-UAE.webp\",\"datePublished\":\"2026-10-06T02:21:08+00:00\",\"description\":\"Learn which UAE free zone income may qualify for 0% Corporate Tax, how mainland sales are treated, and which QFZP records your company must keep.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/#primaryimage\",\"url\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/Qualifying-Free-Zone-Person-in-the-UAE.webp\",\"contentUrl\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/10\\\/Qualifying-Free-Zone-Person-in-the-UAE.webp\",\"width\":735,\"height\":450,\"caption\":\"Qualifying Free Zone Person in the UAE: What Income Qualifies for 0% Corporate Tax?\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/uae-free-zone-qualifying-income\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Blog\",\"item\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Dubai\",\"item\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/dubai\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Qualifying Free Zone Person in the UAE: What Income Qualifies for 0% Corporate Tax?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/\",\"name\":\"InvestinAsia - News and Insight\",\"description\":\"The Market Entry Experts Asia\",\"publisher\":{\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/#organization\"},\"alternateName\":\"InvestinAsia - Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/#organization\",\"name\":\"InvestinAsia\",\"alternateName\":\"IIA\",\"url\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/07\\\/cropped-cropped-logo-iia-dark-3.png\",\"contentUrl\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/07\\\/cropped-cropped-logo-iia-dark-3.png\",\"width\":380,\"height\":100,\"caption\":\"InvestinAsia\"},\"image\":{\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/web.facebook.com\\\/profile.php?id=100087885613500\",\"https:\\\/\\\/www.instagram.com\\\/investinasia.id\\\/\",\"https:\\\/\\\/youtube.com\\\/@InvestInAsia_id\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/investinasiaid\",\"https:\\\/\\\/www.tiktok.com\\\/@investinasia.com\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/#\\\/schema\\\/person\\\/de9104e81d54601d123d6f761c1677e4\",\"name\":\"Abi Mulya\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/ffbeff928d3e6e662e0cd611059fd7ef527305f8673528e7e12c982ece723f10?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/ffbeff928d3e6e662e0cd611059fd7ef527305f8673528e7e12c982ece723f10?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/ffbeff928d3e6e662e0cd611059fd7ef527305f8673528e7e12c982ece723f10?s=96&d=mm&r=g\",\"caption\":\"Abi Mulya\"},\"sameAs\":[\"https:\\\/\\\/investinasia.com\\\/blogauthor\\\/investinasia-renewal\\\/\"],\"url\":\"https:\\\/\\\/investinasia.com\\\/blog\\\/author\\\/investinasia-renewal\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"UAE Free Zone Qualifying Income: 0% Tax Guide 2026 | InvestinAsia","description":"Learn which UAE free zone income may qualify for 0% Corporate Tax, how mainland sales are treated, and which QFZP records your company must keep.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/","og_locale":"en_US","og_type":"article","og_title":"UAE Free Zone Qualifying Income: 0% Tax Guide 2026 | InvestinAsia","og_description":"Learn which UAE free zone income may qualify for 0% Corporate Tax, how mainland sales are treated, and which QFZP records your company must keep.","og_url":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/","og_site_name":"Blog - InvestinAsia","article_publisher":"https:\/\/web.facebook.com\/profile.php?id=100087885613500","article_published_time":"2026-10-06T02:21:08+00:00","og_image":[{"width":735,"height":450,"url":"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2026\/10\/Qualifying-Free-Zone-Person-in-the-UAE.webp","type":"image\/webp"}],"author":"Abi Mulya","twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/#article","isPartOf":{"@id":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/"},"author":{"name":"Abi Mulya","@id":"https:\/\/investinasia.com\/blog\/#\/schema\/person\/de9104e81d54601d123d6f761c1677e4"},"headline":"Qualifying Free Zone Person in the UAE: What Income Qualifies for 0% Corporate Tax?","datePublished":"2026-10-06T02:21:08+00:00","mainEntityOfPage":{"@id":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/"},"wordCount":2799,"publisher":{"@id":"https:\/\/investinasia.com\/blog\/#organization"},"image":{"@id":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/#primaryimage"},"thumbnailUrl":"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2026\/10\/Qualifying-Free-Zone-Person-in-the-UAE.webp","articleSection":["Dubai"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/","url":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/","name":"UAE Free Zone Qualifying Income: 0% Tax Guide 2026 | InvestinAsia","isPartOf":{"@id":"https:\/\/investinasia.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/#primaryimage"},"image":{"@id":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/#primaryimage"},"thumbnailUrl":"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2026\/10\/Qualifying-Free-Zone-Person-in-the-UAE.webp","datePublished":"2026-10-06T02:21:08+00:00","description":"Learn which UAE free zone income may qualify for 0% Corporate Tax, how mainland sales are treated, and which QFZP records your company must keep.","breadcrumb":{"@id":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/#primaryimage","url":"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2026\/10\/Qualifying-Free-Zone-Person-in-the-UAE.webp","contentUrl":"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2026\/10\/Qualifying-Free-Zone-Person-in-the-UAE.webp","width":735,"height":450,"caption":"Qualifying Free Zone Person in the UAE: What Income Qualifies for 0% Corporate Tax?"},{"@type":"BreadcrumbList","@id":"https:\/\/investinasia.com\/blog\/uae-free-zone-qualifying-income\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/investinasia.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Dubai","item":"https:\/\/investinasia.com\/blog\/dubai\/"},{"@type":"ListItem","position":3,"name":"Qualifying Free Zone Person in the UAE: What Income Qualifies for 0% Corporate Tax?"}]},{"@type":"WebSite","@id":"https:\/\/investinasia.com\/blog\/#website","url":"https:\/\/investinasia.com\/blog\/","name":"InvestinAsia - News and Insight","description":"The Market Entry Experts Asia","publisher":{"@id":"https:\/\/investinasia.com\/blog\/#organization"},"alternateName":"InvestinAsia - Blog","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/investinasia.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/investinasia.com\/blog\/#organization","name":"InvestinAsia","alternateName":"IIA","url":"https:\/\/investinasia.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/investinasia.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/07\/cropped-cropped-logo-iia-dark-3.png","contentUrl":"https:\/\/investinasia.com\/blog\/wp-content\/uploads\/2023\/07\/cropped-cropped-logo-iia-dark-3.png","width":380,"height":100,"caption":"InvestinAsia"},"image":{"@id":"https:\/\/investinasia.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/web.facebook.com\/profile.php?id=100087885613500","https:\/\/www.instagram.com\/investinasia.id\/","https:\/\/youtube.com\/@InvestInAsia_id","https:\/\/www.linkedin.com\/company\/investinasiaid","https:\/\/www.tiktok.com\/@investinasia.com"]},{"@type":"Person","@id":"https:\/\/investinasia.com\/blog\/#\/schema\/person\/de9104e81d54601d123d6f761c1677e4","name":"Abi Mulya","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/ffbeff928d3e6e662e0cd611059fd7ef527305f8673528e7e12c982ece723f10?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/ffbeff928d3e6e662e0cd611059fd7ef527305f8673528e7e12c982ece723f10?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ffbeff928d3e6e662e0cd611059fd7ef527305f8673528e7e12c982ece723f10?s=96&d=mm&r=g","caption":"Abi Mulya"},"sameAs":["https:\/\/investinasia.com\/blogauthor\/investinasia-renewal\/"],"url":"https:\/\/investinasia.com\/blog\/author\/investinasia-renewal\/"}]}},"_links":{"self":[{"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/posts\/18053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/comments?post=18053"}],"version-history":[{"count":1,"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/posts\/18053\/revisions"}],"predecessor-version":[{"id":18054,"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/posts\/18053\/revisions\/18054"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/media\/18055"}],"wp:attachment":[{"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/media?parent=18053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/categories?post=18053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/investinasia.com\/blog\/wp-json\/wp\/v2\/tags?post=18053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}