A free zone entity meeting substance and income tests that pays 0% CT on qualifying income under UAE Corporate Tax Law.
QFZP / Corporate Tax
Qualifying Free Zone Person UAE
Achieve Qualifying Free Zone Person (QFZP) status for 0% UAE Corporate Tax on qualifying income — KPM Global Services assesses eligibility, substance requirements, income classification, and FTA registration for free zone entities.
- 0% on Qualifying Income
- Substance Planning
- FTA Compliant
QFZP Path
Qualifying Free Zone Person UAE
1Assess
2Substance
3Elect
4Maintain
Not automatic for free zones
Substance and income type tests apply.
500+
UAE Clients Served
15+
Years UAE Experience
24/7
Advisor Support
8
Service Verticals
Overview
Qualifying Free Zone Person explained
A Qualifying Free Zone Person (QFZP) under UAE Corporate Tax Law pays 0% tax on qualifying income — typically income from transactions with foreign persons and certain free zone persons — while non-qualifying income is taxed at 9%.
QFZP status requires meeting substance requirements: adequate employees, operating expenditure, and assets in the UAE; deriving qualifying income; not electing standard CT regime; and maintaining compliant audited financial statements.
KPM Global Services helps free zone companies assess QFZP eligibility, implement substance requirements, classify income correctly, and file Corporate Tax returns reflecting QFZP elections.
Who This Is For
QFZP assessment clients
- Free zone trading companies with international clients
- Holding companies with qualifying dividend income
- Service firms serving foreign and free zone customers
- Free zone entities unsure if income qualifies for 0% rate
- Companies mixing mainland and free zone revenues
- CFOs planning free zone structure for tax efficiency
How We Help
QFZP advisory services
Eligibility assessment
Evaluate if entity and income streams meet QFZP tests.
Substance planning
Design adequate employees, assets, and opex in UAE.
Income classification
Separate qualifying from non-qualifying revenue streams.
CT registration
Register for Corporate Tax and file QFZP election.
Return preparation
Prepare CT return reflecting QFZP tax treatment.
Ongoing compliance
Monitor substance and income mix to maintain QFZP status.
Process
QFZP advisory process
- 1
Entity review
Analyse free zone licence, activities, and revenue sources.
- 2
Income mapping
Classify transactions as qualifying or non-qualifying.
- 3
Substance gap analysis
Identify substance deficiencies versus QFZP requirements.
- 4
Remediation plan
Implement employees, office, and operational substance.
- 5
CT filing
Register and file return with QFZP election on EmaraTax.
- 6
Annual monitoring
Review substance and income annually to preserve status.
Documents
QFZP assessment documents
- Free zone trade licence and MOA
- Audited financial statements
- Revenue breakdown by customer geography and type
- Employee contracts and payroll records in UAE
- Office lease or flexi-desk agreement in free zone
- Related-party transaction documentation
- Corporate Tax registration certificate
- Prior year tax computations and returns
Pricing
QFZP advisory cost factors
Advisory fees reflect complexity of income classification and substance gaps.
- Number of revenue streams and transaction types
- Substance remediation requirements
- Transfer pricing and related-party complexity
- Corporate Tax return preparation scope
- Ongoing annual compliance retainer
QFZP rules are in Ministerial Decisions subject to update. KPM Global Services applies current FTA guidance.
Timeline
QFZP engagement timeline
Week 1–2
Assessment
Eligibility and income classification completed.
Week 2–4
Substance plan
Remediation actions defined and initiated.
Per CT deadline
Registration
CT registration and QFZP election filed.
Annual
Monitoring
Substance and qualifying income reviewed yearly.
Avoid Mistakes
QFZP compliance mistakes
- Assuming free zone licence automatically confers QFZP status
- Earning mainland UAE customer income without 9% CT planning
- Inadequate UAE substance — shell companies without employees
- Missing de minimis threshold monitoring for non-qualifying income
- Not filing Corporate Tax return despite QFZP election
- Failing to maintain audited accounts required for QFZP
Why KPM
Why Choose KPM Global Services
UAE-focused advisory
Practical guidance on Qualifying Free Zone Person advisory in the UAE from a Dubai-based team that works with authorities, banks, and regulators daily.
Clear documentation
Structured checklists, realistic timelines, and transparent scope so you know what is included before you proceed.
Connected services
Link setup, visas, banking, accounting, VAT, Corporate Tax, PRO, and legal support through one coordinated advisory journey.
No generic templates
Advice is tailored to your activity, shareholders, jurisdiction, and operational plans — not a one-size-fits-all package.
Free Consultation
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FAQ
Qualifying Free Zone Person UAE — Frequently Asked Questions
Practical answers about qualifying free zone person uae in the UAE.
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