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Corporate Tax for Free Zone Companies in UAE

Quick answer

Free zone companies pay UAE Corporate Tax at 9% on non-qualifying income unless they qualify as a Qualifying Free Zone Person (QFZP) with 0% on qualifying income — a free zone licence alone does not guarantee 0% tax.

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Mainland revenue risk

Selling services or goods to UAE mainland clients often creates 9% CT exposure even for free zone entities. Model income streams before assuming tax-free status.

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Last verified: 27 اگست 2026

Fees and rules traced to official UAE authorities. KPM Global review cadence: monthly or on FTA/GDRFA updates.

Official source basis

Federal Tax Authority (tax.gov.ae) public guidance. KPM Global simplified this for business owners — not a substitute for official FTA advice or EmaraTax records.

Fees & rules last reviewed: 27 August 2026

Frequently asked questions

Yes — CT applies; the rate depends on QFZP status and income classification.

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