UAE Corporate Tax for Free Zone Companies (2026)
Updated 2026
Free-zone companies can still benefit from 0% corporate tax on qualifying income — but only if they meet the conditions. Here's the practical picture.
The 0% qualifying-income rule
A Qualifying Free Zone Person can apply 0% corporate tax to qualifying income, with the standard 9% applying to non-qualifying income above the threshold. The definition of qualifying income is detailed and activity-specific.
Substance matters
To keep the benefit you need adequate economic substance — real presence, staff and decision-making in the zone. Keep documentation current; rules continue to evolve.
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Frequently asked
Do free zone companies pay corporate tax in the UAE?
They can still access 0% on qualifying income if they meet the Qualifying Free Zone Person conditions; otherwise the 9% rate applies above the threshold.
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