Qualifying Free Zone Person

Frequently Asked Questions

Refers to a Free Zone person that meets all the conditions outlined in the Free Zone Corporate Tax regime, enabling it to benefit from the tax advantages provided under this regime.

To be recognized as a Qualifying Free Zone Person, the following conditions must be met:

  1. Maintain Adequate Substance:
  2. Derive Qualifying Income:
  3. The Qualifying Free Zone Person must have yet to make an election to be subject to the standard UAE Corporate Tax regime.
  4. Comply with Arm’s Length Principle and Transfer Pricing Rules and documentation.
  5. Compiling and retaining audited financial statements

Should any of the conditions not be met, a Qualifying Free Zone Person will lose its qualified status and be ineligible to avail the advantages of the Free Zone Corporate Tax regime for a period of five (5) Tax Periods.

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