UAE TAX BY INDUSTRY

UAE Tax Guide for Free Zone Companies

Corporate tax, qualifying income, VAT and compliance considerations for companies operating from UAE free zones.

General information only. UAE tax outcomes depend on your facts and current legislation.

What free zone businesses should review

A free zone licence does not automatically settle a company’s tax position. The entity, activities, customers, premises and income streams all matter, and qualifying status comes with conditions and ongoing compliance duties.

Corporate taxRegistration, taxable income, deductions, related parties and filing readiness.
VATRegistration, place of supply, tax invoices, input tax and return reconciliations.
RecordsContracts, invoices, ledgers and evidence that support each tax position.

Questions to ask TaxGPT

Can my free zone company qualify for a 0% corporate tax rate?Which income may be qualifying or excluded?Does my free zone business still need VAT registration?

UAE tax basics

UAE-resident businesses generally face mandatory VAT registration when taxable supplies and imports exceed AED 375,000, while voluntary registration may be available from AED 187,500. The standard corporate tax bands are 0% on taxable income up to AED 375,000 and 9% above that amount, subject to the law and special regimes.

Always verify deadlines, eligibility and exceptions with the Federal Tax Authority and the UAE Ministry of Finance.