Companies in free zones in UAE need to meet certain criteria to be eligible for zero per cent corporate income tax

According to the most recent guide released by the Federal Tax Authority (FTA), enterprises operating in free zones in the United Arab Emirates must fulfill specific requirements in order to qualify as qualified free zone persons (QFZPs) and receive a zero percent corporate income tax on their activities. 

According to Thomas Vanhee, partner at Aurifer Middle East Tax Consultancy, among the requirements are "possession of audited financial statements, having substance, and earning income from qualifying activities." He also added that it's crucial to understand that, with the exception of permanent establishments, the regime is essentially an all-in or all-out regime.