What this checklist helps you complete
Document how a free-zone business meets qualifying-income, substance, audited-financial-statement and transfer-pricing conditions for the 0% Corporate Tax regime.
Complete 8-point checklist
- 1Confirm the entity is in a designated or qualifying free zone
- 2Map each revenue stream to qualifying vs excluded activity
- 3Test the de-minimis rule: non-qualifying revenue under 5% or AED 5M
- 4Evidence adequate substance — staff, premises and operating expenditure
- 5Show core income-generating activities happen inside the free zone
- 6Keep audited financial statements for the tax period
- 7Document transfer pricing for transactions with related parties
- 8Confirm no election was made to be taxed at 9%
Recommended process
Step 1
Map qualifying and excluded activities
Step 2
Run the de-minimis test
Step 3
Evidence people, premises and expenditure
Step 4
Prepare audited financial statements
Step 5
Document related-party pricing
Important information
Use this checklist as a preparation guide, then confirm deadlines and treatment against your entity’s facts and current FTA guidance. Keep submitted forms, acknowledgements, payment receipts and supporting records together so any later review can be answered quickly.