The most expensive checkbox in UAE tax
Is your free zone company really at 0%?
"Free zone" doesn't mean tax-free anymore. Six questions test the Qualifying Free Zone Person conditions — fail one and you're at 9%, for five years.
1 · Is the company registered in a UAE free zone?
2 · Do you prepare audited financial statements? Mandatory whatever your size — unaudited accounts alone disqualify you.
3 · Does the company have real substance in the zone? Staff, premises and operating spend proportional to the activity — not just a flexi-desk.
4 · Is your main income from qualifying activities or other free-zone businesses? Manufacturing, logistics, fund management, HQ services, designated-zone distribution — or free-zone clients. Consultancy to mainland clients generally is NOT qualifying.
5 · Is non-qualifying revenue under the de minimis line? The lower of AED 5,000,000 or 5% of total revenue.
6 · Have you elected to be taxed under the standard regime?