Free zone guide · Dubai
JAFZA corporate tax: when the 0% rate actually applies
Jebel Ali Free Zone (JAFZA) is the UAE's industrial and logistics heavyweight around Jebel Ali Port, hosting manufacturers, distributors and logistics operators. Since June 2023, a JAFZA 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.
JAFZA at a glance
| Emirate | Dubai |
|---|---|
| Designated zone (goods distribution) | Yes |
| Rate on qualifying income | 0% |
| Rate on non-qualifying income | 9% (no 375K band) |
| Audited accounts required for QFZP | Yes — always |
What this means for typical JAFZA businesses
JAFZA is a designated zone: distribution of goods from JAFZA can be a qualifying activity, which is why so many trading companies keep 0% here. Manufacturing and logistics services are also qualifying — JAFZA companies are among the best-placed QFZPs in the country when substance is real.
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.