A Meydan Free Zone company must register for UAE Corporate Tax and file a return every year, even with no activity. The return for a 31 December 2025 year end is due by 30 September 2026. Sales to individuals on marketplaces and sales to mainland buyers are generally non-qualifying, so most Meydan e-commerce and trading companies pay 9% above AED 375,000 or elect Small Business Relief rather than getting the 0% free zone rate.
- Your company is licensed by Meydan Free Zone, including a newly formed LLC with no trading yet
- You sell online through Amazon, Noon, Etsy or your own store, or import goods for UAE buyers
- Your company is suspended, dormant or being cancelled
- You are choosing between Meydan and another free zone and want to know if tax differs
Not sure where you stand? Get a free 15-minute review or ask us on WhatsApp.
Which Meydan Free Zone companies must register for Corporate Tax and VAT?
All of them for Corporate Tax, from the day the licence is issued, and only those passing AED 375,000 of taxable supplies and imports in 12 months for VAT. The registration is in the company’s own name, not yours as manager, and the company files a return even when it has earned nothing.
| Meydan company profile | Corporate Tax | VAT |
|---|---|---|
| New LLC, sole manager, no activity yet | Register now and file a nil return each year | Not yet |
| Online store with UAE sales and imports over AED 375,000 in 12 months | Register and file | Mandatory: imports count toward the threshold |
| Seller with taxable supplies or expenses between AED 187,500 and AED 375,000 | Register and file | Voluntary registration possible |
| Revenue up to AED 3,000,000 and not a Qualifying Free Zone Person | May elect Small Business Relief (periods ending by 31 December 2029) | Normal thresholds |
| Suspended company heading for cancellation | Final return, then deregister | Final VAT 201, then deregister if registered |
A Meydan company that has registered but never traded should read our guide to the nil Corporate Tax return, because a zero return still has a deadline and the same monthly late filing penalty.
Is income from a Meydan e-commerce or trading company taxed at 0% or 9%?
Mostly at the standard rates, because the customers of a typical Meydan online business are individuals or mainland companies, and that income is generally non-qualifying. The 0% rate is reserved for a Qualifying Free Zone Person whose non-qualifying revenue stays within the lower of AED 5,000,000 or 5% of total revenue; our QFZP guide sets out every condition.
How common Meydan revenue streams are treated
| Revenue stream | Customer | Usual treatment for QFZP |
|---|---|---|
| Amazon, Noon or Etsy marketplace orders | Individual shoppers | Generally non-qualifying |
| Own website or social media shop | Individual shoppers | Generally non-qualifying |
| European goods resold to a mainland retailer | Mainland company | Generally non-qualifying |
| Wholesale to a company in another free zone | Free zone person | Can qualify if not an excluded activity |
| Dividends received by a Meydan holding company | Subsidiaries | Holding shares is a Qualifying Activity |
Why a few mainland invoices can sink the whole year
The de minimis limit is small for most sellers. On AED 2,400,000 of revenue it is only AED 120,000, so one mainland wholesale contract can break it. Once broken, the whole company is taxed at the standard rates for that period and the next 4, not just the mainland slice.
Certain distribution activities from a designated zone have their own rules, but Meydan does not appear on the partial designated zone list in our verified references, so do not rely on them without checking the FTA list. Our Corporate Tax guide for e-commerce businesses covers marketplace fees, returns and inventory adjustments.
Does picking Meydan instead of IFZA change your Corporate Tax?
No. The QFZP conditions come from the federal Corporate Tax law, so they are identical in every free zone. What differs is each zone’s renewal paperwork, any audit requirement it sets for renewal, and whether any part of it is a designated zone for goods. Compare with our IFZA Corporate Tax guide and the UAE free zone comparison.
Small Business Relief or QFZP for a Meydan company, and when is an audit needed?
For a Meydan seller with revenue up to AED 3,000,000 that cannot pass the QFZP tests, Small Business Relief is usually the better route: the company is treated as having no taxable income, and no Corporate Tax audit is triggered. It must choose, because the relief is not available to a Qualifying Free Zone Person.
Choosing the route
| Question | If yes | If no |
|---|---|---|
| Is non-qualifying revenue within the lower of AED 5,000,000 or 5%? | QFZP may be possible; check every other condition | QFZP is not available this period |
| Is revenue AED 3,000,000 or less, now and in all prior periods? | Small Business Relief can be elected | Standard rates apply |
| Will you claim QFZP? | Audited financial statements are required | Audit for CT only above AED 50,000,000 revenue |
Meydan's audit rule versus the FTA's
Ministerial Decision No. 84 of 2025 requires audited statements for Corporate Tax from every Qualifying Free Zone Person and from companies with revenue above AED 50,000,000, for periods starting on or after 1 January 2025. Whether Meydan itself asks for audited accounts at renewal is a separate rule to confirm with the Meydan Free Zone authority. Our comparison of free zone audit requirements by zone and the UAE free zone audit guide explain how to check.
Meydan Free Zone VAT: online sales, imports and closing the company
A Meydan company charges 5% VAT on sales to UAE customers once registered, and its imports count toward the AED 375,000 registration threshold. Exports of goods outside the GCC are zero rated, which still counts as taxable supplies for the threshold.
What online sellers get wrong on VAT
- Counting only marketplace payouts instead of gross sales before fees when testing the threshold.
- Forgetting that imported stock counts toward AED 375,000; see VAT on imports and the reverse charge.
- Treating a goods sale as outside VAT because of a free zone address, when Meydan’s designated zone status must be checked against the FTA list and services are always 5%.
- Missing tax invoices for business buyers, which must be issued within 14 days of supply.
Suspending or cancelling a Meydan licence does not close your FTA accounts
Meydan handles the licence; the FTA handles tax. Before the licence is cancelled, file the final Corporate Tax return, apply to deregister, and do the same for VAT if registered, using our guides to Corporate Tax deregistration and cancelling a VAT TRN. Keep CT records for 7 years and VAT records for 5 years after closing.
Filing a Meydan Free Zone company's Corporate Tax return, step by step
For an online seller, most of the work sits in reconciling platform payouts to gross sales before EmaraTax is even opened.
Download every platform settlement report
Pull a full year of marketplace, payment gateway and shop platform reports, and match payouts to bank receipts.
Rebuild gross revenue
Record sales before marketplace commission, fulfilment and advertising deductions, and book those deductions as expenses.
Classify customers
Separate individual shoppers, mainland companies, free zone buyers and export customers. This drives the de minimis test.
Count closing stock
Value stock held in warehouses and at fulfilment centres so cost of goods sold is right.
Pick the tax route
Decide between QFZP, Small Business Relief and the standard rates using the table above, before the accounts are finalised.
Prepare the return on EmaraTax
Enter the financial statement figures, tax adjustments, the Small Business Relief election if chosen, and the transfer pricing disclosure for owner payments.
Submit and pay by the deadline
File and pay within 9 months of the year end, 30 September 2026 for a December 2025 year end, and save the acknowledgement.
Records a Meydan online business should pull together
These are the records the FTA can ask a Meydan seller to produce, and the ones an accountant needs to file.
- Meydan licence, memorandum of association and manager appointment
- Corporate Tax and VAT registration certificates
- Marketplace and payment gateway settlement reports for the full year
- Supplier invoices, including European purchase invoices in foreign currency
- Customs declarations and import VAT records
- Stock count and valuation at year end
- Bank statements for every account and wallet
- Sales invoices issued to mainland and free zone business buyers
Key FTA dates for Meydan Free Zone companies
The next hard date for a December year end Meydan company is 30 September 2026, when both the Corporate Tax return and payment are due.
| Deadline | Obligation | Applies to |
|---|---|---|
| 30 September 2026 | Corporate Tax return and payment | 31 December 2025 year ends, including dormant companies |
| 28th of the month after each VAT period | VAT 201 and payment | VAT registered sellers |
| Before the licence is cancelled | Final returns and deregistration | Suspended or closing companies |
| 31 March 2027 | Appoint an e-invoicing Accredited Service Provider | Businesses under AED 50,000,000 revenue |
| 1 July 2027 | E-invoicing go live | Businesses under AED 50,000,000 revenue |
| 7 years after the period | Keep Corporate Tax records | Every company, including closed ones |
FTA penalties a Meydan Free Zone company can be charged
A Meydan company pays the same FTA penalties as any UAE business, and the ones that hit sellers most are late returns at AED 500 a month and late payment at 14% a year. The table follows Cabinet Decision 75/2023 as amended for Corporate Tax and Cabinet Decision 129/2025 for VAT.
| Penalty | Amount | Source |
|---|---|---|
| Late Corporate Tax registration | AED 10,000, waived if the first return is filed within 7 months of the first period end | CD 75/2023 as amended |
| Late Corporate Tax return | AED 500 a month for 12 months, then AED 1,000 a month | CD 75/2023 as amended |
| Late Corporate Tax payment | 14% a year, calculated monthly | CD 75/2023 as amended |
| Late Corporate Tax deregistration | AED 1,000 a month, up to AED 10,000 | CD 75/2023 as amended |
| Late VAT registration | AED 10,000 plus backdated output VAT | CD 129/2025 |
| Late VAT return | AED 1,000, then AED 2,000 if repeated within 24 months | CD 129/2025 |
| Failure to issue a tax invoice or credit note | AED 2,500 per case | CD 129/2025 |
| Losing QFZP status | Standard rates for that period and the next 4 | Corporate Tax law |
How it stacks for a Meydan seller owing AED 13,050 that files and pays 4 months late: 4 x AED 500 = AED 2,000 for the late return, plus AED 13,050 x 14% x 4/12 = AED 609 for late payment, a total of AED 2,609 on top of the tax.
Is your Meydan company already late?
We check which returns are missing, what penalties have accrued and whether a waiver window is still open for your Meydan company.
6 compliance mistakes Meydan Free Zone founders make
These come up again and again with Meydan companies run by founders based outside the UAE.
- Waiting for the first sale to register. Registration is due whatever the revenue, and late registration costs AED 10,000.
- Believing marketplace income is tax free. Sales to individuals are generally non-qualifying, so a 0% claim fails and standard rates apply for 5 periods.
- Testing thresholds on net payouts. Gross sales and imports decide VAT registration; undercounting leads to late registration and backdated VAT.
- Selling to one mainland buyer without checking the de minimis. A single contract can exceed 5% of revenue.
- Cancelling the licence first and the FTA later. Deregistration penalties run at AED 1,000 a month up to AED 10,000.
- Throwing away records after closure. Missing CT records can cost AED 10,000, and they must be kept for 7 years.
The routine that keeps a Meydan company clear of FTA penalties
Build these into your calendar and a Meydan company rarely sees a penalty.
- Monthly: reconcile marketplace settlements to bank receipts
- Monthly: keep a rolling 12 month total of taxable supplies plus imports
- Monthly: tag each sale by customer type: individual, mainland, free zone, export
- Quarterly: file the VAT 201 by the 28th, even for a quiet quarter
- Quarterly: check non-qualifying revenue against the de minimis limit
- Annually: count stock and choose QFZP, Small Business Relief or standard rates
- Before closing: final returns and deregistration, then licence cancellation
Our bookkeeping guide for e-commerce businesses shows how to set up settlement reconciliations.
Behind on filings or closing a suspended Meydan company?
File every overdue return now, starting with the oldest, because late filing penalties keep adding AED 500 a month until each return is in. Our missed Corporate Tax deadline guide sets out the order. If a filed return was wrong, for example it claimed 0% on marketplace income, correct it by voluntary disclosure before the FTA opens an audit.
To challenge a penalty, submit a reconsideration request within 40 business days of the decision, as explained in our reconsideration guide; a refusal can go to the Tax Disputes Resolution Committee. For closure, deregister for Corporate Tax and VAT before the licence is cancelled, and see our company liquidation support if you want the process handled end to end.
Received an FTA notice or closing your Meydan licence?
Send us the notice or your cancellation paperwork and we will map the tax steps in the right order.
Worked example: a Meydan marketplace seller with AED 2.4M revenue
Take an illustrative Meydan Free Zone home decor seller with AED 2,400,000 of revenue in 2025: AED 1,500,000 from marketplace and web store orders by individuals, and AED 900,000 of wholesale sales to mainland retailers.
| Item | AED | Working |
|---|---|---|
| Total revenue | 2,400,000 | 1,500,000 + 900,000 |
| Non-qualifying revenue | 2,400,000 | Individuals and mainland buyers |
| De minimis limit | 120,000 | Lower of AED 5,000,000 or 5% x 2,400,000 |
| QFZP | Fails | Individual sales alone exceed 120,000 |
| Cost of goods sold | 1,420,000 | Including landed cost of imports |
| Marketplace fees and advertising | 360,000 | Deducted from payouts |
| Other expenses | 100,000 | Warehouse, software, licence |
| Taxable income | 520,000 | 2,400,000 minus 1,880,000 |
| Corporate Tax at standard rates | 13,050 | 9% x (520,000 minus 375,000) |
| Corporate Tax with Small Business Relief | 0 | Revenue within AED 3,000,000 in this and prior periods |
The seller cannot use 0%, but Small Business Relief removes the AED 13,050 as long as revenue stays within AED 3,000,000. If sales pass that next year, the standard rates return, so growth planning matters. VAT registration is mandatory at this size, with 5% on UAE sales.
Meydan tax filing: do it yourself, use a freelancer or hire an accounting firm?
A Meydan company with no activity can file its own nil return; a seller with marketplace settlements, stock and imports usually needs an accountant who reconciles platforms.
| Option | Cost | Time and risk | Suits |
|---|---|---|---|
| Do it yourself | No fee | High time; gross sales and stock errors are common | Dormant Meydan companies |
| Freelance bookkeeper | Typical market range: lower than a firm, depends on volume | Medium; platform reconciliation skill varies | Small sellers below the VAT threshold |
| Accounting firm such as Paci | Fixed quote within 24 hours; bookkeeping from AED 599 a month | Low; reconciled books and reviewed return | VAT registered sellers and importers |
When you are ready to hand it over, our Corporate Tax filing service prepares and reviews the return, and our VAT registration service handles the TRN.
Questions Meydan company owners bring to us
My Meydan company is suspended, the accounts are done, VAT and Corporate Tax returns are filed and the VAT penalty is paid. What tax steps are left before cancelling?
Apply to deregister for Corporate Tax once the final return is in, and for VAT if registered, before the licence is cancelled. Late Corporate Tax deregistration costs AED 1,000 a month up to AED 10,000. Then keep the company’s CT records for 7 years and VAT records for 5 years after closing.
I set up a Meydan LLC as sole manager with no business activity yet. Do I register for Corporate Tax now, and as what?
Yes, now. The company registers in its own name on EmaraTax, whatever its revenue, and files a return every year even at zero. You do not register personally for your role as manager.
I am choosing between Meydan and IFZA for an international online business with no UAE sales. Will the zone change my Corporate Tax?
No, the QFZP conditions are set by federal law and apply the same in every free zone: adequate substance, audited statements, non-qualifying revenue within the lower of AED 5,000,000 or 5% of revenue, and transfer pricing compliance. Online sales to individuals are generally non-qualifying wherever you are licensed. Compare zones on cost and renewal rules instead.
I am setting up a Meydan company to sell on Amazon and Etsy. Will that income be tax free?
Unlikely. Sales to individuals are generally non-qualifying, so they count against the de minimis limit and a retail business breaks it quickly, meaning standard rates for that period and the next 4. With revenue up to AED 3,000,000, Small Business Relief can bring the tax to zero instead.
Our company buys goods from Europe and sells them straight to a mainland UAE company. Does that sale lose the 0% rate?
Income from mainland customers is generally non-qualifying, so it counts toward the lower of AED 5,000,000 or 5% of revenue. If the limit is breached, the whole company pays standard rates for that period and the next 4, not just the mainland sale. Model the contract before signing.
Frequently asked questions
Do Meydan Free Zone companies pay corporate tax?+
Yes. Every Meydan company registers and files. It pays 0% only on Qualifying Income if it is a Qualifying Free Zone Person; otherwise 0% on taxable income up to AED 375,000 and 9% above, unless it elects Small Business Relief with revenue up to AED 3,000,000.
When is the Meydan Free Zone corporate tax return due?+
Nine months after the financial year end. For a 31 December 2025 year end, the return and any payment are due by 30 September 2026. The deadline applies to dormant companies too.
When does a Meydan Free Zone company need VAT registration?+
When taxable supplies plus imports exceed AED 375,000 over the previous 12 months or are expected to within the next 30 days. Voluntary registration is possible from AED 187,500. Our free zone VAT registration guide explains the calculation.
Does Meydan Free Zone require an audit?+
For Corporate Tax, an audit is required if the company claims Qualifying Free Zone Person status or has revenue above AED 50,000,000. Any audit requirement for licence renewal is set by Meydan Free Zone and must be confirmed with the authority.
Can a dormant Meydan company file a zero corporate tax return?+
Yes, and it must. A company with no revenue still files a return by the deadline; skipping it costs AED 500 a month for the first 12 months. Keep bank statements showing the lack of activity.
Is Meydan Free Zone a designated zone for VAT?+
Meydan does not appear on the partial designated zone list in our references, so check the FTA’s current published list before relying on designated zone treatment. Designated zone rules only affect goods; services are always 5%.
What records must a Meydan company keep after it closes?+
Corporate Tax records for 7 years and VAT records for 5 years, including invoices, settlement reports, bank statements and the final returns. Failing to keep records can cost AED 10,000 for a first Corporate Tax violation.
Get your Meydan company's tax position reviewed for free
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- FTA: Registration for VAT
- FTA: Waiver of penalties
- Ministry of Finance: Decision on Small Business Relief for Corporate Tax
- Meydan Free Zone
Checked against these sources on 15 September 2026. This guide is general information for UAE businesses, not advice on your specific facts.