Freezone 0% tax checker (QFZP)
Six questions to see whether your freezone company keeps the 0% rate — or is quietly heading for 9% on everything.
Why this matters
Freezone does not automatically mean 0%. The 0% rate applies only to qualifying income of a Qualifying Free Zone Person — and the conditions are all-or-nothing. Miss one and the whole entity is taxed at 9%, typically for five periods.
- All boxes ticked → likely QFZP, formal review recommended
- Any box unticked → status at risk; quantify the exposure now
This checker is indicative only. The real assessment maps every revenue stream against the qualifying activities list in the legislation.
FAQs
What is a Qualifying Free Zone Person (QFZP)?
A freezone entity that meets all conditions — adequate substance in the zone, qualifying income, audited financial statements, transfer pricing compliance and de minimis limits — and therefore pays 0% on qualifying income and 9% on the rest.
What happens if one condition fails?
Failing the conditions means losing QFZP status for that period and, broadly, the following four — the entire taxable income becomes subject to 9%. This is why the assessment is worth doing properly.
What is the de minimis rule?
Non-qualifying revenue must not exceed the lower of 5% of total revenue or AED 5 million. Exceed it and QFZP status is lost.
Is mainland income always non-qualifying?
Income from mainland UAE customers is generally non-qualifying unless it falls within specific qualifying activities. Revenue-stream mapping against the qualifying activities list is the core of the assessment.
Numbers raising questions?
These tools give estimates. We give answers — free first consultation, fixed fees after.