UAE Free Zone Qualified Free Zone Person (QFZP) Eligibility Checker Guide 2026
Understanding QFZP status determines your UAE corporate tax rate. Here is the 2026 guide to checking your eligibility.
In this guide:
What Is a Qualifying Free Zone Person?
- QFZP status: A UAE free zone company that qualifies for the 0% CT rate on qualifying income
- Non-qualifying income: Even QFZPs pay 9% CT on income from UAE mainland transactions that exceed the de minimis threshold
- De minimis rule: Non-qualifying income must not exceed 5% of total revenue OR AED 5 million (whichever is lower)
QFZP Eligibility Requirements
- Must be a free zone juridical person (FZE, FZCO, LLC in DIFC/ADGM)
- Maintain adequate substance in UAE (employees, assets, management decisions in UAE)
- Earn qualifying income (income from qualifying activities with qualifying customers)
- Comply with transfer pricing rules if dealing with related parties
- Maintain audited financial statements
- NOT elect Small Business Relief (SBR election removes QFZP status)
Qualifying Income Examples
- Income from transactions with other free zone entities
- Export income (goods or services to non-UAE customers)
- Income from qualifying intellectual property
- Certain investment income (dividends, capital gains from qualifying shareholdings)
Non-Qualifying Income (9% CT rate)
- Income from UAE mainland customers (in most cases)
- Income from UAE mainland real estate
- Income from non-qualifying activities (certain financial services, insurance)