Navigating the UAE's 9% Corporate Tax Framework
Effective June 2023, the UAE implemented a federal corporate tax of 9% on taxable business profits exceeding AED 375,000 (~USD 102,000), cementing its status as one of the most competitive tax regimes among major global economies.
For foreign entrepreneurs and multinational holding groups, understanding Qualifying Free Zone Person (QFZP) rules is crucial to retaining 0% corporate tax on international qualifying trading activities.
Qualifying Free Zone Person (QFZP) Status
Companies established in designated Free Zones that maintain adequate economic substance, conduct qualifying activities, and derive revenue from outside the UAE or with other Free Zone entities can benefit from 0% headline tax.