US & Global Business
QFZP (Qualifying Free Zone Person) — Meaning
A UAE free zone company that meets conditions to pay 0% corporate tax on qualifying income.
What is QFZP (Qualifying Free Zone Person)?
Under UAE corporate tax, a Qualifying Free Zone Person pays 0% on qualifying income and 9% on other income. To qualify, the entity must maintain adequate substance in the free zone, derive qualifying income, keep non-qualifying revenue within the de minimis limit (5% of revenue or AED 5 million), prepare audited financial statements, comply with transfer pricing rules and not elect the standard regime. Failing a condition removes QFZP status for that period and the following four.
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