0% is a status you earn, not a setting you switch on.
The instinct that made you check this is right. Founders sign a lease and build a whole structure on a zero-tax assumption they never tested. The claim is not a lie, but a headline is not a ruling on your company. The 0% rate belongs to a Qualifying Free Zone Person, earned and held, not handed over at incorporation. The honest question is not whether 0% exists. It is whether it applies to you.
Five conditions, and they only count together.
These are the moving parts of qualifying status, not a checklist to self-certify. They interact, and two companies in the same free zone can land on opposite sides of the line.
- Adequate substance. Real activity in the zone: suitable premises, qualified people, and operating spend proportionate to what you do, not just a registered address.
- Qualifying income. A defined category that turns on who your customer is and what your activity is. The line is rarely where founders assume.
- The de minimis limit. The small permitted margin of non-qualifying income. Cross it and you lose the status, not just part of the benefit.
- Audited financial statements. The split between qualifying and non-qualifying income must be verifiable. Clean records are part of the requirement, not optional.
- Arm's length pricing. Transfer pricing rules apply to related-party dealings. In group structures, this is where 0% quietly unravels if it was set up wrong.
Whether you fit is specific to you.
The conditions are the same for everyone. The answer is not. Four things decide which side of the line you land on, and none shows up on a brochure.
- The activity. What you actually sell.
- The customer. Who you sell it to.
- The substance. Where the work is genuinely done.
- The structure. How the group is set up.
This is an advisory question, not a checkbox. The five conditions mean different things for a consultancy billing overseas clients than for a trader selling into the UAE mainland. The numbers underneath are eligibility facts, not prices: the AED 375,000 corporate tax threshold and the standard 9% rate. We work out privately which side of the line your company falls on.
The miss is not a small adjustment.
One breached year can put 0% out of reach for five.
0% lost, income taxed at 9%
Fail the conditions and the non-qualifying income is taxed at the standard 9% rate, backdated, not waived because the assumption was honest. A free zone person that breaches the requirements can also lose Qualifying Free Zone Person status for that tax period and the following four. On a profitable company, the gap between a planned 0% and an unplanned 9% across five periods, plus penalties for late or incorrect filing, decides whether the structure ever made sense.
We test free zone 0% against your real facts before you rely on it, and we will not call it realistic when it is not.
That means looking honestly at your activity, customers, substance, and records, then telling you plainly whether qualifying status is realistic and what it would take to hold it. It also means saying so when a mainland structure would serve you better. We do not promise 0%, because no one honestly can promise a status that depends on how you operate. You go in with the real conditions in view, not a banner, and you speak with Manish directly, not a sales desk. The QFZP explainer covers the mechanics in depth, and the tax picture overview sets it alongside corporate tax and VAT.
Why founders test the hard questions with us.
Everything was perfect, very fast, easy and super professional. You helped me and my family get our Golden Visas without any stress.
From the initial assessment to final implementation, the team demonstrated strong expertise, structured methodology, and clear communication.
They delivered what they promised without any hidden agenda and informed me of better and less costly ways to achieve what I need.
Thanks to Manish Kumar, we were finally able to speed up the process of getting our visa after months of struggling with other agents.
He was super quick to reply, very efficient and honestly the best I have worked with. He made the whole process so much easier.
Manish demonstrated deep expertise, professionalism, and a thorough understanding of the incorporation process. Proactive, responsive, and efficient.
They've assisted me and my family obtain golden residency in the UAE. All timelines were clearly defined and all processes transparent.
Communication was clear from the start, everything managed end to end with full transparency on costs.
Manish was instrumental in setting up our company in Dubai. Always responsive, readily available to answer our questions.
A trusted advisor, a skilled navigator of complex regulatory landscapes, with unshakeable integrity.
Great and professional support from Manish. I recommend working with him on any project.