Free Zone Regulatory Resource

UAE Free Zone Corporate Tax & QFZP Readiness Checklist

Protect your 0% tax status. Review the 6 mandatory compliance checkpoints required by the Federal Tax Authority (FTA) for Free Zone entities.

The 6 QFZP Compliance Checkpoints

1. Adequate Physical Substance

Maintain adequate core income-generating activities, qualified full-time employees, and operational expenditure within a UAE Free Zone.

2. Qualifying Income Classification

Ensure revenue is derived from transactions with other Free Zone entities or specified qualifying activities under Cabinet Decision No. 100.

3. De Minimis Threshold Compliance

Ensure non-qualifying revenue does not exceed 5% of total revenue or AED 5,000,000 (whichever is lower).

4. Transfer Pricing Documentation (Article 55)

Maintain arm’s length master and local files for intercompany transactions with domestic or foreign related parties.

5. Annual Audited Financial Statements

Prepare financial statements audited by a registered UAE auditor compliant with IFRS standards.

6. Official EmaraTax Election & Return Filing

Complete formal QFZP elections and submit annual corporate tax returns on EmaraTax within 9 months of fiscal year-end.

Speak with a Valusage Free Zone tax advisor to review your qualifying revenue streams.