Check whether your free zone company may qualify for 0% UAE corporate tax on qualifying income, review the de minimis test, and identify when a full QFZP assessment is needed before filing.
Enter total revenue and non-qualifying revenue, then tick the key QFZP conditions. The checker gives a quick indication of whether your 0% free zone corporate tax position may be safe or at risk.
Losing QFZP status means 9% on all your income for five years. Our team assesses qualifying vs non-qualifying income and keeps you compliant.
This checker is for general guidance only. A final QFZP position depends on your activities, counterparties, contracts, accounting records, substance, audited financial statements, transfer pricing compliance, and full UAE corporate tax rules.
A Qualifying Free Zone Person, often called a QFZP, is a UAE free zone entity that meets the required conditions to access the 0% corporate tax rate on qualifying income.
A Dubai free zone license does not automatically mean all income is taxed at 0%. The business should pass the relevant conditions, classify revenue correctly, and maintain the right records before relying on the QFZP benefit.
The checker focuses on the de minimis limit, non-qualifying revenue, adequate substance, audited financial statements, transfer pricing compliance, and whether the company has elected into the standard corporate tax regime.
The de minimis rule allows a limited amount of non-qualifying revenue without automatically losing QFZP status, but the limit is strict.
| Revenue item | Example amount | How it is tested | Possible result |
|---|---|---|---|
| Total revenue | AED 8,000,000 | Used to calculate 5% of revenue | AED 400,000 is the 5% amount |
| Fixed ceiling | AED 5,000,000 | Compared with 5% of total revenue | Lower amount is used |
| De minimis limit | AED 400,000 | Lower of AED 5,000,000 or 5% of revenue | Non-qualifying revenue should not exceed this |
| Non-qualifying revenue | AED 200,000 | Compared with the limit | Likely within the de minimis limit |
This page is useful for free zone businesses that want a quick risk check before requesting a detailed corporate tax review.
The checker is a simplified indicator. A full QFZP assessment should review your exact business activities, contracts, accounts, location of functions, and income streams.
Before claiming the 0% rate, your free zone company should document why it meets the applicable QFZP conditions for the relevant tax period.
The business should have the right people, assets, office, management, and activity profile in the UAE free zone for the income it earns.
Free zone companies that rely on QFZP treatment should be ready with proper financial records and audited accounts where required.
Related party and connected person transactions should be supported by arm's length pricing and relevant documentation.
Each revenue stream should be classified as qualifying, non-qualifying, excluded, or requiring further review before filing.
If a free zone company elects to be taxed under standard corporate tax rules, QFZP treatment may not apply for that tax period and the following periods.
QFZP status should be checked each year because a failed condition can affect the current and later tax periods.
Zerosync Accountants helps free zone companies move from a quick checker result to a proper corporate tax position with documentation and filing support.
We review your free zone status, qualifying income, non-qualifying income, de minimis test, substance, and supporting records.
We prepare the corporate tax computation, support the return filing process, and help reduce filing risk for free zone entities.
We help UAE free zone and mainland businesses register for corporate tax and align registration details with filing requirements.
A reliable QFZP review depends on clean records and a clear breakdown of how each revenue stream was earned.
We separate qualifying income, non-qualifying revenue, excluded activities, and items that need deeper review.
We review substance, audited financial statements, transfer pricing, de minimis limits, and election position.
We connect the assessment with corporate tax return preparation, supporting documents, and future compliance planning.
The 0% rate is linked to QFZP status and qualifying income. A free zone license alone is not enough.
Small non-qualifying amounts can still matter because the de minimis test compares them against a strict threshold.
Weak contracts, poor revenue mapping, missing audited accounts, or weak transfer pricing records can create filing risk.
These answers are written for free zone business owners who need clear guidance before asking for a detailed tax review.
The QFZP Qualifying Income Checker is a quick tool that helps a UAE free zone company test whether its revenue mix and key conditions may support 0% corporate tax on qualifying income. It is an indicator only and should be followed by a full QFZP assessment before filing.
QFZP means Qualifying Free Zone Person. It refers to a free zone business that meets the conditions required to access the 0% corporate tax rate on qualifying income under the UAE corporate tax regime.
No. A free zone license does not automatically make all income taxable at 0%. The company must meet QFZP conditions, classify income correctly, and maintain the required records for the relevant tax period.
Qualifying income depends on the activity, counterparty, beneficial recipient status, exclusions, and other free zone corporate tax rules. It may include certain income from transactions with other Free Zone Persons and certain qualifying activities, subject to the detailed rules.
Non-qualifying revenue is revenue that does not fall within qualifying income rules or comes from excluded activities. It needs to be reviewed carefully because too much non-qualifying revenue can put QFZP status at risk.
The de minimis limit is generally the lower of AED 5,000,000 or 5% of total revenue for the tax period. If non-qualifying revenue exceeds the applicable limit, QFZP status can be lost.
If a free zone business fails the de minimis test, it may be subject to standard corporate tax rules and rates from the beginning of that tax period and for the following four tax periods.
Audited financial statements are an important condition for maintaining QFZP status. Free zone businesses relying on the 0% rate should prepare proper accounts and keep audit-ready records.
Yes. QFZPs need to comply with the arm's length principle and transfer pricing documentation requirements where relevant, especially for related party and connected person transactions.
No. A Qualifying Free Zone Person cannot elect Small Business Relief. The company should review whether QFZP status or standard corporate tax treatment is more appropriate for its position.
Yes. The checker can be used by Dubai free zone companies as a starting point, but the final position depends on the exact free zone, license activity, revenue streams, contracts, substance, accounts, and corporate tax filing details.
No. The checker is simplified and does not review every qualifying activity, excluded activity, contract, transfer pricing file, audited account, or FTA filing position. A professional QFZP assessment is recommended before filing.
Send your checker result to Zerosync Accountants and our Dubai corporate tax team will help you review qualifying income, non-qualifying revenue, de minimis risk, substance, records, and filing requirements.
