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.