Regime Rate
0%
Under the Free Zone 0% CIT
Standard Top Rate
30%
without this regime
Duration
Unlimited
No expiry — permanent regime
Target Profile
Free Zone / Special Zone
UAE
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under Free Zone 0% CIT
€0
Standard Rate
€31 500
Annual Saving
+€31 500
Eligibility Requirements
Who qualifies?
- Companies operating within UAE Free Zones, meeting substance requirements
How the Regime Works
Full details
0% CIT on Qualifying Income for QFZP. Qualifying income includes sales to non-mainland UAE customers, intra-group transactions, IP income. Substance test required: adequate employees and assets.
Regime vs Standard Rates in UAE
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 30% | 0% | -30.0pp |
Frequently Asked Questions
What is the Free Zone 0% CIT in UAE?
The Qualifying Free Zone Person (QFZP) — 0% Corporate Tax is a special tax regime in UAE that provides 0% flat rate to qualifying individuals or entities. 0% CIT on Qualifying Income for QFZP. Qualifying income includes sales to non-mainland UAE customers, intra-group transactions, IP income. Substance test required: adequate employees and assets. Legal basis: UAE Corporate Tax Law 2022, Art. 34-49.
Who is eligible for the Free Zone 0% CIT?
Eligibility for the Free Zone 0% CIT is limited to: Companies operating within UAE Free Zones, meeting substance requirements. Applicants typically must not have been UAE tax residents during a specified prior period. Always verify current conditions at the source: UAE Corporate Tax Law 2022, Art. 34-49.
How much tax do you pay under the Free Zone 0% CIT?
Under the Free Zone 0% CIT, you pay 0% personal income tax — compared to the standard UAE top rate of 30%. This is a complete exemption for qualifying residents.
How long does the Free Zone 0% CIT last?
The Free Zone 0% CIT is a permanent regime with no set expiry — it applies for as long as you continue to meet the eligibility criteria.
How do I apply for the Free Zone 0% CIT?
Application procedures for the Free Zone 0% CIT are set out in UAE Corporate Tax Law 2022, Art. 34-49. You typically need to file a formal application with UAE's tax authority after establishing residency. Consult a local tax advisor for guidance.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.