01
Entity and activity map
Confirm the taxable person, licence, actual activities, locations and transaction flows for the period under review.
Free Zone decision resource
UAE Free Zone Corporate Tax and QFZP readiness checklist
A Free Zone licence does not establish a 0% Corporate Tax result. Review the current QFZP conditions against the entity's activities, income, substance, related parties, de minimis position, financial statements and supporting records.
Reviewed 23 August 2026 · Valusage Business Advisors Editorial Practice
Six evidence checkpoints
02
Income classification
Map qualifying income, excluded activities and other income to current legislation and the entity's evidence.
03
Adequate substance
Document the people, assets, expenditure and core income-generating activity connected with the relevant operations.
04
Transfer pricing
Identify related parties and connected persons, apply the arm's-length principle and assess documentation requirements.
05
De minimis calculation
Calculate non-qualifying revenue against the lower of 5% of total revenue or AED 5 million using period-specific support.
06
Financial statements and records
Confirm the applicable audited-financial-statement requirement and retain the records supporting each condition.
Questions before relying on the treatment
Does a UAE Free Zone licence automatically produce a 0% Corporate Tax result?+
No. The treatment depends on whether the taxable person meets the current Qualifying Free Zone Person conditions for the relevant period and on how its income and activities are classified.
What evidence should be assembled before a QFZP review?+
Management should assemble entity and licence records, activity and income maps, customer and related-party information, substance evidence, transfer-pricing support, de minimis calculations and the applicable financial statements.
Request a Free Zone Corporate Tax review
Discuss the entity, activities, income streams, related parties and available evidence. The written scope confirms deliverables, responsibilities, timing and exclusions.
Discuss the evidence review