Tax
Qualifying Free Zone Person
Also known as QFZP
A Qualifying Free Zone Person is a UAE free zone company that meets the conditions for a 0% corporate tax rate on qualifying income: adequate substance in the free zone, income falling within the qualifying activities, non-qualifying revenue inside a de minimis threshold, arm's length pricing with documentation, and audited financial statements.
In plain terms: The status a Dubai free zone company needs to actually pay 0% — being in the free zone is not enough.
Why it matters
Since June 2023 the UAE has levied corporate tax at 9%. The free zone 0% survives as a conditional status rather than an address, and services sold to unrelated businesses or to individuals generally fall outside the qualifying activity list.
Common misunderstanding
Treating the de minimis as a taper. Exceeding the non-qualifying revenue threshold removes the status entirely for that period and several following ones, taxing all income at 9%.
Read the full guideThe UAE is not a zero-tax country any more