Free tool
Does your free zone company qualify for 0% tax?
Seven questions and one number. You'll see each Qualifying Free Zone Person condition marked pass, at risk or fail, and what it means for your return.
Is the business incorporated or registered in a UAE free zone?
A free zone company, or a free zone branch of a foreign company. Mainland companies can't be Qualifying Free Zone Persons.
Under the hood
What the 0% rate depends on
- 1
Being a free zone person with real substance
Incorporated or registered in a free zone, with core income-generating activities carried out there with adequate assets, staff and spend.
- 2
Earning qualifying income
Income from qualifying activities under Ministerial Decision No. 229 of 2025, or from transactions with other free zone persons, subject to the excluded activities.
- 3
Passing the de minimis test
Non-qualifying revenue of no more than 5% of total revenue or AED 5 million, whichever is lower, every year.
- 4
Transfer pricing and audited accounts
Arm's length pricing with related parties, transfer pricing documentation where required, and audited financial statements whatever your size.
- 5
Keeping it, year after year
Fail any condition and the 0% rate is lost for that tax period and the next four. That is why the position needs reviewing before every return.