NaqoodList of qualifying free zones in the UAE for corporate tax
As of January 25, 2025, there is no comprehensive official list of Qualifying Free Zones in the UAE specifically for Corporate Tax purposes. The concept of Qualifying Free Zones is related to the UAE Corporate Tax Law, which came into effect on June 1, 2023. However, based on the available information, we can infer that many of the existing free zones in the UAE may qualify, provided they meet the criteria set by the tax authorities.
Examples of free zones that are likely to be considered Qualifying Free Zones include
- Jebel Ali Free Zone (JAFZA)
- Dubai Airport Free Zone (DAFZ)
- Dubai Multi Commodities Centre (DMCC)
- Abu Dhabi Global Market (ADGM)
- Khalifa Industrial Zone Abu Dhabi (KIZAD)
- Ras Al Khaimah Economic Zone (RAKEZ)
Conditions for qualifying income
It鈥檚 important to note that being located in a free zone doesn鈥檛 automatically make a business a Qualifying Free Zone Person (QFZP). To benefit from the 0% corporate tax rate on qualifying income, businesses must meet specific conditions, including:
- Maintaining adequate substance in the UAE
- Deriving Qualifying Income as specified by the Cabinet
- Not electing to be subject to standard Corporate Tax
- Complying with the Arm鈥檚 Length Principle and Transfer Pricing Documentation
For the most up-to-date and accurate information on Qualifying Free Zones, businesses should consult with the UAE Federal Tax Authority or a qualified tax advisor see our list of FTA approved accountants in UAE here.
You can also read our list of designated zones for VAT purpose here