That’s the way we have always done it!!

We hope this newsletter finds you in great health and high spirits. in today’s edition, we want to shed light on an important topic that affects many of our readers - Qualified Free Zone Person status because you Are having to Decide It at the time of Corporate tax Registration Adequate Substance - full-time employees, operating expenditure, physical assets, and revenue from core activities Qualifying Income and Excluded Income and conditions attached with them QFZP does not have the AED 375,000 tax threshold instead it is taxed as Qualifying Income 0% Non Qualifying Income 9% one exclusion is de minimis condition but de minimis will apply only when the non-qualifying income is the lowest of 5% of the revenue or AED 5million Qualified Free Zone Person is not an automatic status for the free zone companies or companies registered in Financial Free Zones such as DIFC, ADGM, etc.

This status is subject to qualifying the conditions such as maintaining adequate substance and deriving qualifying income if making supplies to non-free zone persons, etc. Since QFZPs do not have a tax threshold (normally available to a person subject to tax at regular tax rates) it is important you ask a Tax Advisor today to determine your company’s QFZP status!! Time is of the essence and timely preparation is crucial. Determine your status through careful evaluation.

You can no longer say.....That's the way we have always done it!!