Free zone guide · Dubai

Dubai South corporate tax: when the 0% rate actually applies

Dubai South Free Zone (Dubai South) is the emerging aviation-and-logistics city around Al Maktoum International Airport, hosting logistics, aviation and e-commerce operators. Since June 2023, a Dubai South company keeps 0% corporate tax only as a Qualifying Free Zone Person (QFZP) — and only on qualifying income. Everything else is taxed at 9%, with no AED 375,000 free band.

Dubai South at a glance

EmirateDubai
Designated zone (goods distribution)Yes (logistics district)
Rate on qualifying income0%
Rate on non-qualifying income9% (no 375K band)
Audited accounts required for QFZPYes — always

What this means for typical Dubai South businesses

Logistics services are a qualifying activity, and the logistics district's designated-zone status supports distribution businesses. E-commerce fulfilment operators should map B2B vs B2C revenue carefully — sales to individuals are generally excluded from qualifying income.

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Failing any QFZP condition — substance, audit, de minimis — costs the status for that year and the next four. If in doubt, run the 60-second QFZP checker.
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Estimate your position

Use the corporate tax calculator with the Free Zone toggle to model your qualifying/non-qualifying split, and see the full free-zone guide for the qualifying-activity list.

General information, not tax advice. QFZP analysis depends on your specific facts — confirm with a licensed UAE tax agent.