ETaxFlow tracks Qualifying Free Zone Person (QFZP) income separately, handles free zone VAT rules, and prepares corporate tax returns that preserve your 0% rate on qualifying income — for DMCC, JAFZA, ADGM, DIFC and all UAE free zones.
Free zone companies face a unique combination of rules: qualifying income at 0% CT, non-qualifying income at 9%, VAT on transactions with mainland UAE, and designated zone goods rules. ETaxFlow handles all of it.
Tag every revenue line as qualifying or non-qualifying at the time of invoicing — ETaxFlow keeps a running QFZP income ledger so your 0% CT eligibility is documented throughout the year, not scrambled at year end.
Free zone to mainland UAE supplies are generally taxable at 5% VAT. ETaxFlow automatically applies the correct VAT treatment based on your customer's location and the nature of the supply.
For companies in UAE Designated Zones dealing in physical goods, ETaxFlow applies the suspended VAT treatment for intra-designated-zone transfers and flags when goods leave the zone.
At year end, ETaxFlow prepares the corporate tax return with full QFZP income disclosure — showing the MoF exactly how much income qualifies for the 0% rate and how much is subject to 9%.
Most UAE free zones require WPS salary compliance for resident visa holders. ETaxFlow runs payroll and generates SIF files for DMCC, JAFZA, ADGM, DIFC and all WPS-enrolled free zones.
Generate the annual financial reports and entity type disclosures needed to demonstrate adequate economic substance in your free zone — a requirement for maintaining QFZP status.
ETaxFlow is used by businesses in every major UAE free zone — mainland-facing or export-focused.
Remaining a Qualifying Free Zone Person (QFZP) requires constant monitoring of your revenue mix and trade partners. ETaxFlow isolates different operational income channels automatically, helping you protect your tax benefits under the latest UAE regulations.
Automatically tags and tracks sales into the UAE mainland, warning you early if you risk crossing the de minimis threshold of 5% of total income or AED 5 million.
Stores operational expenses and matching employee payroll records together to support your local substance validations — employees, premises, and asset costs linked per period.
Each revenue stream tagged against the permitted activities list from Ministerial Decision No. 265 of 2023. Non-permitted income flagged immediately before it risks QFZP status.
Period-end report summarising qualifying income %, de minimis usage, substance indicators, and CT position — ready for your auditor and FTA filing.
Key questions on the UAE Corporate Tax free zone regime
A QFZP is a free zone entity that: (1) maintains adequate substance in the UAE free zone, (2) derives qualifying income, (3) has not elected to be subject to the standard CT regime, and (4) meets the de-minimis non-qualifying income test (≤5% of total revenue or AED 5 million, whichever is lower). ETaxFlow automatically checks all four conditions against your live accounts each quarter.
Qualifying income includes income from transactions with other free zone businesses, income from qualifying intellectual property, and income from the sale of goods or services that fall within the free zone's approved activities. Mainland UAE sales, income from domestic UAE branches, and interest on domestic deposits are generally non-qualifying. ETaxFlow tags every transaction with a qualifying/non-qualifying flag based on your counterparty and income type.
Yes. QFZPs must still register, file an annual CT return, and maintain financial records — even if the tax payable is AED 0. The return demonstrates that you met the QFZP conditions for the period. ETaxFlow prepares the full QFZP computation with qualifying/non-qualifying income split and de-minimis test workings.
If you breach any of the four QFZP conditions in a given tax period, you are taxed at the standard 9% rate for that entire period — the 0% rate does not apply pro-rata. You also lose QFZP status for the following four tax periods. ETaxFlow sends an alert if your non-qualifying income is approaching the de-minimis cap during the year so you can take corrective action before period end.
Yes. ETaxFlow supports all UAE free zones including DIFC, ADGM, DMCC, JAFZA, RAKEZ, IFZA, SAIF Zone, and Dubai Airport Free Zone. DIFC and ADGM companies incorporated under Common Law frameworks are fully supported, with the correct legal form settings applied during onboarding to ensure FTA filing formats are accurate.
Critical compliance facts every UAE free zone company should know.
Available to QFZPs meeting substance, income, and de-minimis tests. ETaxFlow tracks all three.
Mainland sales, domestic UAE interest, and income outside approved activities are taxed at 9%.
Most UAE free zones are not designated zones — standard 5% VAT applies to taxable supplies above AED 375,000.
Substance, qualifying income, de-minimis, and no standard CT election. Breach any one and you lose 0% for 4+ years.
Non-qualifying income must be ≤5% of total revenue or AED 5 million — whichever is lower. ETaxFlow tracks this live.
UAE CT law requires all records to be maintained for at least 7 years (10 for real estate). ETaxFlow stores records with automated backups.