Yes. Default 9% on taxable income. QFZP may get 0% on qualifying income meeting substance and income tests.
Free Zone CT
Free Zone Corporate Tax UAE
Navigate UAE Corporate Tax as a free zone entity — KPM Global Services advises on Qualifying Free Zone Person (QFZP) 0% rate, substance requirements, qualifying income tests, and 9% tax on non-qualifying mainland revenue.
- QFZP Planning
- 0% & 9% Rates
- Substance Compliance
Free Zone CT
Free Zone Corporate Tax UAE
1Classify
2Substance
3Elect
4File
Not automatic tax-free
QFZP tests and income classification.
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Overview
Corporate Tax for UAE free zone companies
UAE free zone companies are subject to Corporate Tax at 9% on taxable income unless they qualify as Qualifying Free Zone Persons (QFZP) earning qualifying income taxed at 0% — but free zone licence alone does not confer automatic exemption.
QFZP status requires adequate substance in UAE, audited financial statements, qualifying income from foreign persons and certain free zone transactions, and no election of standard CT regime. Income from UAE mainland branches or domestic sales may be taxed at 9%.
KPM Global Services helps free zone entities assess QFZP eligibility, implement substance, classify income streams, register with FTA, and file Corporate Tax returns reflecting correct rate application.
Who This Is For
Free zone Corporate Tax clients
- DMCC, IFZA, RAKEZ, and other free zone licence holders
- Free zone trading companies with international clients
- Holding companies receiving dividends and capital gains
- Service firms mixing free zone and mainland revenue
- CFOs comparing QFZP versus standard CT election
- Free zone startups registering for first Corporate Tax TRN
How We Help
Free zone Corporate Tax services
QFZP eligibility review
Assess substance, income type, and de minimis requirements.
Income classification
Separate qualifying from non-qualifying revenue streams.
Substance planning
Document adequate employees, assets, and opex in UAE.
CT registration
Register free zone entity on FTA EmaraTax platform.
Tax return filing
Prepare annual return with QFZP election or standard rate.
Mainland branch analysis
Advise on 9% CT exposure for UAE domestic income.
Process
Free zone Corporate Tax compliance
- 1
Entity review
Analyse licence, activities, revenue geography, and structure.
- 2
QFZP assessment
Test substance, qualifying income, and exclusion triggers.
- 3
CT registration
Obtain Corporate Tax TRN from FTA.
- 4
Substance implementation
Align operations with QFZP adequacy requirements.
- 5
Return preparation
Compile financials and file annual Corporate Tax return.
- 6
Annual review
Reassess QFZP status each year as business evolves.
Documents
Free zone CT documents
- Free zone trade licence and financial statements
- Revenue breakdown by client geography
- Employee contracts and payroll in UAE
- Office lease and asset registers
- Related-party agreements and transfer pricing docs
- Prior CT returns and FTA correspondence
- Audit report where required for QFZP
- Organisational chart and substance evidence
Pricing
Free zone CT advisory fees
QFZP analysis adds complexity over standard CT filing.
- QFZP eligibility assessment versus standard CT return
- Income classification across multiple revenue streams
- Substance gap remediation advisory
- Audit coordination for QFZP financial statement requirement
- Transfer pricing for related-party free zone transactions
Incorrect QFZP election carries FTA penalty exposure. KPM Global Services documents eligibility before election.
Timeline
Free zone CT compliance calendar
Post-licence
Registration
CT TRN obtained within FTA deadline.
Year-end
QFZP test
Substance and income classified for tax period.
+ 9 months
Filing
Corporate Tax return submitted with QFZP or standard election.
Annual
Review
Reassess as revenue mix and substance evolve.
Avoid Mistakes
Free zone Corporate Tax mistakes
- Assuming free zone licence means zero Corporate Tax automatically
- Ignoring 9% CT on UAE mainland-sourced income
- Claiming QFZP without adequate UAE substance
- Missing CT registration believing QFZP exempts registration
- Not obtaining audit where required for QFZP status
- Mixing qualifying and non-qualifying income without segmentation
Why KPM
Why Choose KPM Global Services
UAE-focused advisory
Practical guidance on free zone Corporate Tax compliance in the UAE from a Dubai-based team that works with authorities, banks, and regulators daily.
Clear documentation
Structured checklists, realistic timelines, and transparent scope so you know what is included before you proceed.
Connected services
Link setup, visas, banking, accounting, VAT, Corporate Tax, PRO, and legal support through one coordinated advisory journey.
No generic templates
Advice is tailored to your activity, shareholders, jurisdiction, and operational plans — not a one-size-fits-all package.
Free tool
Estimate 0% / 9% CT
Calculate and check before you speak to an advisor — FTA-aligned thresholds, instant results, PDF export.
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Request a Quote — Free Zone Corporate Tax UAE
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FAQ
Free Zone Corporate Tax UAE — Frequently Asked Questions
Practical answers about free zone corporate tax uae in the UAE.
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