UAE free zones have unique accounting, compliance, and Corporate Tax requirements. Profitrack specialises in freezone accounting across JAFZA, DMCC, DAFZA, DSO, and all major UAE free zones — including Qualifying Free Zone CT status advisory.
Each UAE free zone has its own licensing authority, compliance calendar, and specific reporting requirements. On top of this, the introduction of UAE Corporate Tax adds a critical new dimension — particularly around maintaining Qualifying Free Zone Person status to benefit from the 0% CT rate. Profitrack's team understands the full picture.
Accurate monthly bookkeeping tailored to your free zone's requirements — compliant with both the free zone authority and UAE accounting standards.
Advise on and document adequate substance requirements for free zone entities — critical for maintaining QFZP status and 0% CT rate on qualifying income.
Assess whether your free zone business qualifies as a Qualifying Free Zone Person and what conditions must be maintained to retain the 0% CT rate.
Prepare IFRS-compliant annual financial statements required for free zone licence renewal and statutory purposes.
Liaise with your appointed auditors and prepare all documentation required for the mandatory annual audit submission to the free zone authority.
Ensure all accounting and financial reporting obligations are met on time to support smooth, penalty-free licence renewal with your free zone authority.
Free zone entities that meet specific conditions can benefit from a 0% Corporate Tax rate on their qualifying income. The key conditions include: maintaining adequate substance in the free zone, not conducting business with UAE mainland parties (beyond permitted limits), having qualifying income (from free zone or foreign sources), and complying with transfer pricing rules.
Income from transactions with other free zone entities and foreign parties
Income from mainland UAE parties exceeding de minimis threshold
Yes. All UAE free zone entities must register for Corporate Tax, regardless of whether they qualify for the 0% QFZP rate. Registration is mandatory. What varies is the rate you pay — QFZP entities pay 0% on qualifying income and 9% on non-qualifying income, while non-QFZP entities pay the standard 9% rate above AED 375,000.
Adequate substance means having genuine economic activity in the free zone — including having qualified employees, maintaining a real office, conducting core income-generating activities from the free zone, incurring appropriate operating expenses, and having management and control decisions made within the UAE. Profitrack helps you document and maintain these requirements.
Most UAE free zones require their licensees to submit audited financial statements annually as a condition of licence renewal. The specific requirements vary by free zone authority. Additionally, QFZP entities and businesses with revenue above AED 50 million must have audited financial statements for Corporate Tax purposes. Profitrack ensures your accounts are audit-ready well before deadlines.
From daily bookkeeping to QFZP compliance — Profitrack covers every aspect of your free zone financial obligations.