Free zone companies can still enjoy 0% Corporate Tax — but only on qualifying income, with substance and audited accounts. In this guide, the GoldenKey editorial team breaks the topic down the way our consultants explain it across the desk — practical, current, and free of jargon.
Qualifying vs excluded income
Qualifying vs excluded income sits at the heart of this topic. In the UAE, Corporate Tax applies at 9% on taxable profits above AED 375,000. Understanding this early shapes every downstream decision — from the jurisdiction you pick to the way banks and authorities read your file. Let's unpack the details that matter.
Our advisory team sees this daily across Ajman, Dubai, Sharjah and the northern emirates: founders who address “qualifying vs excluded income” properly at the start save both government fees and weeks of back-and-forth later. The practical approach is to document your position, confirm the current requirement with the relevant authority (rules are refined frequently), and keep written evidence in your company file. Where costs are involved, always demand a fixed written quotation — reputable consultants, GoldenKey included, publish their fees upfront and accept instalments via Tabby and Tamara.
The substance requirements
The substance requirements sits at the heart of this topic. In the UAE, Qualifying Free Zone Persons can retain a 0% rate on qualifying income if substance and audit conditions are met. Understanding this early shapes every downstream decision — from the jurisdiction you pick to the way banks and authorities read your file. Here is what that means in practice.
Our advisory team sees this daily across Ajman, Dubai, Sharjah and the northern emirates: founders who address “the substance requirements” properly at the start save both government fees and weeks of back-and-forth later. The practical approach is to document your position, confirm the current requirement with the relevant authority (rules are refined frequently), and keep written evidence in your company file. Where costs are involved, always demand a fixed written quotation — reputable consultants, GoldenKey included, publish their fees upfront and accept instalments via Tabby and Tamara.
Audited financials: now mandatory
Audited financials: now mandatory sits at the heart of this topic. In the UAE, VAT registration is mandatory at AED 375,000 annual taxable turnover and voluntary at AED 187,500. Understanding this early shapes every downstream decision — from the jurisdiction you pick to the way banks and authorities read your file. The mechanics are simpler than they look once laid out.
Our advisory team sees this daily across Ajman, Dubai, Sharjah and the northern emirates: founders who address “audited financials: now mandatory” properly at the start save both government fees and weeks of back-and-forth later. The practical approach is to document your position, confirm the current requirement with the relevant authority (rules are refined frequently), and keep written evidence in your company file. Where costs are involved, always demand a fixed written quotation — reputable consultants, GoldenKey included, publish their fees upfront and accept instalments via Tabby and Tamara.
The de minimis rule
The de minimis rule sits at the heart of this topic. In the UAE, EmaraTax is the FTA's portal for registration, filing and payments — and deadlines carry automatic penalties. Understanding this early shapes every downstream decision — from the jurisdiction you pick to the way banks and authorities read your file. Here is what that means in practice.
Our advisory team sees this daily across Ajman, Dubai, Sharjah and the northern emirates: founders who address “the de minimis rule” properly at the start save both government fees and weeks of back-and-forth later. The practical approach is to document your position, confirm the current requirement with the relevant authority (rules are refined frequently), and keep written evidence in your company file. Where costs are involved, always demand a fixed written quotation — reputable consultants, GoldenKey included, publish their fees upfront and accept instalments via Tabby and Tamara.
Losing QFZP status: the cost
Losing QFZP status: the cost sits at the heart of this topic. In the UAE, Corporate Tax applies at 9% on taxable profits above AED 375,000. Understanding this early shapes every downstream decision — from the jurisdiction you pick to the way banks and authorities read your file. Let's unpack the details that matter.
Our advisory team sees this daily across Ajman, Dubai, Sharjah and the northern emirates: founders who address “losing qfzp status: the cost” properly at the start save both government fees and weeks of back-and-forth later. The practical approach is to document your position, confirm the current requirement with the relevant authority (rules are refined frequently), and keep written evidence in your company file. Where costs are involved, always demand a fixed written quotation — reputable consultants, GoldenKey included, publish their fees upfront and accept instalments via Tabby and Tamara.