QFZP De Minimis Checker
Free zone companies keep the 0% Corporate Tax rate only while non-qualifying revenue stays within a small limit. Check yours in seconds.
De minimis result
- Revenue for the test
- 5% of that revenue
- Limit (lower of 5% or AED 5M)
- Your non-qualifying revenue
- As % of revenue for the test
- Headroom
Estimates only, based on UAE law and FTA guidance as of November 2026. Not tax or legal advice.
How the de minimis test works
- Take total revenue for the tax period.
- Remove disregarded revenue (permanent establishments, certain free zone immovable property, qualifying IP) to get revenue for the test.
- Calculate the limit: the lower of 5% of revenue for the test or AED 5,000,000.
- Compare non-qualifying revenue against the limit. It must not exceed it.
| Revenue for the test (AED) | Limit (AED) | Which cap applies |
|---|---|---|
| 2,000,000 | 100,000 | 5% |
| 20,000,000 | 1,000,000 | 5% |
| 100,000,000 | 5,000,000 | Both equal |
| 300,000,000 | 5,000,000 | AED 5M |
What happens if you fail
The company stops being a QFZP from the start of the tax period in which it fails, and for the following four tax periods. All its taxable income is then taxed at the standard rates for five years: 0% on the first AED 375,000 and 9% above. For a company earning AED 3 million of profit, that is roughly AED 236,000 a year.
The test is passed or failed on actual revenue for the whole period, so watch it during the year. Most failures come from small mainland service contracts that nobody flagged. Our QFZP advisory reviews your contracts and income streams, and our QFZP guide explains the other conditions.
Frequently asked questions
What is the QFZP de minimis limit?
Non-qualifying revenue must not exceed the lower of 5% of total revenue or AED 5 million in the tax period.
What revenue is disregarded in the de minimis test?
Revenue attributable to domestic or foreign permanent establishments, certain income from immovable property in a free zone, and qualifying intellectual property income are excluded from both non-qualifying revenue and total revenue.
What happens if a free zone company fails the de minimis test?
It loses QFZP status from the beginning of that tax period and for the next four tax periods, so all taxable income is taxed at the standard 0% and 9% rates for five periods.
Is mainland revenue always non-qualifying?
No. Income from mainland customers is qualifying only if it comes from certain qualifying activities, such as some distribution of goods from a designated zone. Most service and consulting fees from mainland customers are non-qualifying.
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