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UAE Free Zone Tax and Compliance Guides

Corporate Tax, VAT and audit rules for companies in each UAE free zone: QFZP conditions, deadlines and the assumptions that lead to penalties.

11 guidesUpdated 15 September 2026

Quick answer

Free zone companies are not automatically tax free. Every free zone company must register for Corporate Tax and file a return. The 0% rate applies only to qualifying income of a Qualifying Free Zone Person that has adequate substance, audited financial statements and non-qualifying revenue within the lower of AED 5,000,000 or 5% of revenue. Fail a condition and 9% applies for that period and the next 4. Choose your free zone below.

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All 11 guides

Corporate Tax and VAT Filing for DMCC Companies: Deadlines, Penalties and How to Stay CompliantGold dealers, commodity traders, crypto firms and consultancies all hold DMCC licences, and their tax results could not be more different. Where 0% is realistic, where 9% applies and which VAT rules bite, as of September 2026.Corporate Tax and VAT Filing for IFZA Companies: Deadlines, Penalties and How to Stay CompliantMost IFZA consultancies and holding companies are not automatically on 0%. Here is how the Qualifying Free Zone Person test, Small Business Relief, VAT and FTA penalties apply to an IFZA licence as of September 2026.Corporate Tax and VAT Filing for Meydan Free Zone Companies: Deadlines, Penalties and How to Stay CompliantMeydan is a favourite for online sellers, remote founders and holding companies. This guide shows how marketplace sales, mainland buyers, dormant periods and licence closure play out for Corporate Tax and VAT as of September 2026.Corporate Tax and VAT Filing for RAKEZ Companies: Deadlines, Penalties and How to Stay CompliantRAKEZ licenses factories, warehouses and traders alongside small service and content companies. Here is how Corporate Tax and VAT apply to each as of September 2026, including qualifying manufacturing income and RAKEZ designated areas.Corporate Tax and VAT Filing for SHAMS (Sharjah Media City) Companies: Deadlines, Penalties and How to Stay CompliantSHAMS licences suit creators, marketers, coaches and one-person media companies, and many were never registered for Corporate Tax. Here is what that costs, how to fix it and how SHAMS income is taxed as of September 2026.Corporate Tax and VAT Filing for SPC Free Zone (Sharjah Publishing City) Companies: Deadlines, Penalties and How to Stay CompliantSPC Free Zone is popular with publishers, printers, IT consultants and budget one-owner companies billing clients abroad. Here is what Corporate Tax and VAT really require of an SPC licence as of September 2026, and what it costs to get wrong.Corporate Tax and VAT Filing for Ajman Free Zone Companies: Deadlines, Penalties and How to Stay CompliantLow-cost Ajman Free Zone licences attract small traders and service firms, but the FTA treats them like any other company. When 0% applies, when 9% does, and what VAT and penalties look like as of September 2026.Corporate Tax and VAT Filing for Dubai CommerCity Companies: Deadlines, Penalties and How to Stay CompliantDubai CommerCity is the e-commerce free zone, and most licensees sell online to consumers. That single fact drives their Corporate Tax outcome, their VAT invoicing and their penalty risk, as set out here for September 2026.Corporate Tax and VAT Filing for Fujairah Creative City Companies: Deadlines, Penalties and How to Stay CompliantFujairah Creative City licenses media freelancers, content creators and small creative agencies, many working remotely for clients anywhere. Whether you hold a freelance permit or a company decides your Corporate Tax, and your turnover decides VAT.Corporate Tax and VAT Filing for JAFZA Companies: Deadlines, Penalties and How to Stay CompliantJAFZA is built for logistics, re-export and regional distribution, and that shapes both your 0% Corporate Tax chances and your VAT on goods leaving the zone. The rules and penalties as of September 2026.Free Zone Audit Requirements UAE 2026: Deadlines by ZoneA zone by zone table of audit rules for 22 UAE free zones as of September 2026, plus the Corporate Tax rule that makes every Qualifying Free Zone Person audit its accounts.

Frequently asked questions

Do free zone companies pay Corporate Tax in the UAE?+

They must register and file. A Qualifying Free Zone Person pays 0% on qualifying income if it keeps adequate substance, prepares audited financial statements, keeps non-qualifying revenue within the lower of AED 5,000,000 or 5% of revenue, follows transfer pricing rules and does not elect the standard rate. Otherwise 9% applies above AED 375,000.

Do free zone companies have to charge VAT?+

The same registration thresholds apply as on the mainland. Only goods moving within designated zones can be outside the scope of VAT; services are always subject to VAT at 5%.

Can a Qualifying Free Zone Person also claim Small Business Relief?+

No. Small Business Relief is not available to a Qualifying Free Zone Person, so a small free zone company has to decide which position it takes before filing.

Does renewing my free zone licence cover my tax filings?+

No. The free zone authority handles your licence; Corporate Tax and VAT registrations, returns and payments are separate obligations with the Federal Tax Authority.

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