Qualifying Free Zone Person (QFZP) Assessment
Maximize Your Tax Benefits with Expert QFZP Assessment Service
Qualifying Free Zone Person (QFZP) Assessment
Simplify Compliance, Maximize Savings
HAS Global Tax Consultants specializes in helping businesses in Dubai and across the UAE Free Zones secure and maintain their Qualifying Free Zone Person (QFZP) status. Our expert team guides you through the complex UAE Corporate Tax Law, ensuring you benefit from the 0% corporate tax rate on qualifying income.
What is a Qualifying Free Zone Person (QFZP)?
A QFZP is a company registered in a UAE Free Zone that meets specific legal and operational criteria, allowing it to enjoy a 0% corporate tax rate on qualifying income. Non-qualifying income is taxed at the standard 9% rate.
Key Conditions for QFZP Status
To qualify as a QFZP and access the 0% corporate tax rate, your business must:
Be incorporated or registered in a UAE Free Zone.
Maintain substantial economic presence (adequate assets, staff, and operations) within the Free Zone.
Earn qualifying income from approved activities, as defined by UAE tax law.
Not elect to be taxed under the standard UAE corporate tax regime.
Comply with transfer pricing rules and maintain proper documentation.
Keep audited financial statements.
Ensure non-qualifying revenue does not exceed AED 5 million or 5% of total revenue (whichever is lower).
Failing to meet any of these criteria can result in losing QFZP status and facing the standard 9% corporate tax for up to five years.
Why QFZP Assessment Matters
Unlock 0% Tax Rate: Ensure your business structure and operations meet all requirements for maximum tax savings.
Stay Compliant: Avoid penalties and the risk of losing QFZP benefits by proactively managing your compliance.
Strategic Planning: Identify qualifying and non-qualifying income streams for optimal tax planning.
Business Confidence: Maintain strong financial transparency and business reputation.
Expert Guidance: Provide clients with professional advice on UAE tax and regulatory requirements.
Why Choose HAS Global Tax Consultants?
Local Expertise: Deep knowledge of UAE Free Zone regulations and corporate tax law.
Comprehensive Service: From initial assessment to ongoing compliance, we support your QFZP journey at every step.
Proactive Approach: We help you anticipate regulatory changes and maintain your tax-advantaged status.
Tax Registration FAQs
How does corporate tax grouping differ from VAT grouping in the UAE?
Corporate tax grouping lets UAE companies file one corporate tax return as a single entity, offset profits and losses, and apply the AED 375,000 tax-free threshold at the group level. VAT grouping allows related companies to file one VAT return and ignore VAT on transactions between group members. The main difference: corporate tax grouping is for income tax, with strict ownership rules, while VAT grouping is for VAT, focusing on simplifying VAT reporting and removing VAT on internal transactions. Both require separate applications and have different eligibility criteria.
What are the legal requirements for businesses to join a corporate tax group in the UAE?
To join a corporate tax group in the UAE, businesses must:
Be UAE resident legal entities (not individuals)
Have the parent company own at least 95% of each subsidiary
Ensure no member is an exempt or Qualifying Free Zone Person
Share the same financial year and accounting standards
Get approval from the Federal Tax Authority (FTA)
These rules let the group file one consolidated tax return.
How does the UAE's corporate tax grouping system impact small businesses?
The UAE’s corporate tax grouping can help small businesses by allowing them to file one tax return and offset losses within the group, reducing paperwork and tax bills. However, the AED 375,000 tax-free threshold and Small Business Relief apply to the whole group, not each company. All members share liability for group tax debts, and managing a group can be more complex. Small businesses should weigh the benefits and risks before joining a tax group.
Corporate Tax grouping
across the UAE
Streamline your UAE tax compliance and unlock group tax benefits