ZeroSync Accountants helps Dubai trading companies map their trade flows, protect qualifying free zone income, manage mainland sales, monitor de minimis exposure and file corporate tax correctly.
Best for importers, exporters, re-exporters, distributors, general trading companies, commodity traders and free zone or mainland trading groups.
Dubai trading companies are taxed based on profit, but for free zone traders the important question is which income qualifies for 0%. Export, re-export and dealings with other free zone persons can often qualify, while sales into the UAE mainland may be non-qualifying and taxed at 9%.
A mainland trader has a simpler position, with standard corporate tax on taxable profit above the nil-rate band.
We map each trade flow, customer type and goods movement so the corporate tax position is based on evidence rather than assumptions.
| Trade flow | Typical free zone treatment |
|---|---|
| Export to foreign customers | Often qualifying at 0% |
| Re-export and international trade | Often qualifying at 0% |
| Trade with other free zone persons | Often qualifying at 0% |
| Trading qualifying commodities | Can be qualifying where conditions are met |
| Sales into UAE mainland | May be non-qualifying and taxed at 9% |
A free zone trader can be efficient for international and re-export trade, but mainland sales need careful handling. A mainland trader pays standard tax but can sell directly across the UAE without the same qualifying-income complexity.
| Point | Free zone trader | Mainland trader |
|---|---|---|
| International trade | Often supports 0% qualifying income | Taxed under standard rules |
| Mainland sales | May be non-qualifying and affect de minimis | Sold freely under standard tax |
| Complexity | Qualifying-income analysis required | Simpler 9% position above the nil-rate band |
| Best for | Export, re-export and inter-free-zone trade | UAE market distribution |
A free zone trader with growing mainland sales can put QFZP status at risk because non-qualifying revenue must remain within the lower of AED 5 million or 5% of total revenue.
If the limit is breached, the business may lose its 0% qualifying position. We monitor this threshold and help structure mainland sales properly.
Trading profit depends heavily on cost of goods sold, landed cost, freight, duties, inventory treatment and write-downs. If these are recorded badly, taxable profit can be overstated.
We review COGS and inventory so the return reflects the real trading margin, while keeping customs duty, VAT and corporate tax properly separated.
Dubai re-export and entrepot trade can often support a strong 0% free zone position, but the goods flow must be documented. Records should show who you bought from, who you sold to, where the goods moved and which entity earned the income.
Good documentation turns a tax position from a claim into evidence.
We classify foreign, free zone and mainland income.
We advise whether one entity or a combined structure fits.
We track non-qualifying revenue for QFZP risk.
We ensure taxable profit reflects real trading margins.
We prepare and file the corporate tax return.
We support group trading and related-party flows.
Speak with ZeroSync and get the right route confirmed before the next deadline or filing period.
Yes. Mainland traders pay standard corporate tax on taxable profit above the nil-rate band, while free zone traders can access 0% on qualifying income if conditions are met.
For free zone traders, sales to UAE mainland customers may be non-qualifying and taxed at 9%. For mainland traders, standard tax applies.
Yes. If non-qualifying revenue exceeds the de minimis limit, QFZP status can be at risk.
Free zone often suits export and re-export trade. Mainland often suits UAE market distribution. Some groups use both.
Cost of goods sold, landed cost, freight, duties, inventory treatment and write-downs are central to accurate taxable profit.
Keep clear records of goods movement, counterparties, invoices, contracts and whether the income is foreign, free zone or mainland.
