Free Zone and QFZP in Dubai
Assess and protect eligibility for the 0% rate on qualifying income, including substance, audited financial statements, de minimis and transfer-pricing requirements.
Cost of Delay
Last reviewed 22 Sep 2026Failing the QFZP conditions can remove access to the 0% regime for the relevant period and may affect subsequent periods under the applicable rules. The commercial exposure can exceed any standalone administrative fine.
Summarised from official UAE sources for information. Amounts and deadlines depend on the facts and can change, so the current position is confirmed before we advise.
Book a QFZP ReviewCase study
Example scenario, not a completed engagementA free-zone business assumed all income qualified for 0%. Regent separated qualifying and non-qualifying streams, tested de minimis and identified the documentation needed before filing.
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Frequently asked questions
What does Regent include in its Free Zone and QFZP service?
Scope includes qFZP eligibility assessment, income-stream and de minimis review, substance and audited-financial-statement check, and remediation and annual compliance plan. The proposal confirms entities, periods and exclusions.
When should we start and what will Regent need?
Start when the obligation, transaction, notice or deadline is known. Regent will issue a focused request list beginning with qFZP eligibility assessment, entity details, records and dates.
Can we check our position before committing to the full service?
Yes. Use the QFZP Eligibility Checker for an initial indication, then route the result to the appropriate Regent advisor.
Is my free zone company automatically taxed at 0%?
No. The 0% rate only applies to qualifying income once specific conditions are met, including substance, audited financial statements and a de minimis test on non-qualifying income. Many free zone businesses assume they qualify without checking.
Do UAE free-zone companies automatically pay 0% Corporate Tax?
No. A free-zone company receives the 0% rate only if it qualifies as a Qualifying Free Zone Person and only on Qualifying Income. Conditions include maintaining adequate substance, meeting transfer-pricing requirements, preparing audited financial statements and staying within the de minimis rules for non-qualifying revenue. Income attributable to a permanent establishment outside the free zone, and other non-qualifying income, may be taxed at 9%. All free-zone persons should assess and document their position rather than assume a blanket exemption. Source: UAE Federal Tax Authority: Corporate Tax guide for Free Zone Persons; UAE Ministry of Finance: Ministerial Decision No. 84 of 2025 on audited financial statements.