Selling abroad from a Free Zone—0% tax? · NOVA

Selling abroad from a Free Zone—0% tax?

Guys, we keep getting this question:

“If I sell only to clients outside the UAE from a Free Zone, is my corporate tax 0%? Can I just pay myself salary or dividends tax-free?”

Here’s the straight answer 👇

Not automatically.

UAE’s default corporate tax is 9 % once your profit passes a small threshold.
Some Free Zone companies can get 0 %, but only if they tick every box to be a Qualifying Free Zone Person (QFZP)—specific activities, real presence in the zone, limits on non-qualifying income, audited accounts, all that.
There’s also a Small Business Relief for tiny revenue, but it’s temporary and not something to build a long plan on.

Personal side:

Salary or dividends you take in the UAE aren’t taxed locally (UAE personal income tax = 0 %).
Your home country might still want a piece if you’re tax-resident there.

The catch most people miss:0 % in the UAE does not mean 0 % everywhere.If your company is effectively managed from another country, or if that country has CFC rules, they can tax the profits anyway.

Quick checklist to stay safe:

Check if your business activity really fits the QFZP qualifying list.
Make sure real management and key decisions happen in the UAE.
Double-check your home country’s tax-residency, PE, and CFC rules.
If you don’t fully qualify for 0 %, just plan for 9 %—still way lower than most places.

Bottom line: the UAE is super business-friendly, but there’s no “free tax forever” magic.

Know the rules first, then build your structure.

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