Free zone guide · Sharjah

SHAMS corporate tax: when the 0% rate actually applies

Sharjah Media City (SHAMS) is a low-cost zone aimed at media, creative and freelance businesses. Since June 2023, a SHAMS 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.

SHAMS at a glance

Emirate	Sharjah
Designated zone (goods distribution)	No
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 SHAMS businesses

Most SHAMS licences are media/creative services sold to mainland or individual clients — generally non-qualifying income. For typical SHAMS freelancers the real questions are the AED 1M natural-person threshold and Small Business Relief, not QFZP status.

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.

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.