Corporate Tax Guide in UAE for Meydan Free Zone Businesses
March 14, 2022
September 23, 2025
June 23, 2025
September 23, 2025
Topic Summary
1. Understand the UAE Corporate Tax Framework
From 1 June 2023, the UAE implemented a federal corporate tax at a standard rate of 9% on taxable income exceeding AED 375,000. Meydan Free Zone businesses must comply with this regime, ensuring that profits derived within and outside the Free Zone are accurately reported and taxed accordingly.
2. Benefit from Free Zone Tax Incentives
Meydan Free Zone offers specific tax advantages subject to regulatory conditions. Qualifying businesses may benefit from a 0% corporate tax rate on qualifying income earned within the Free Zone, provided they maintain compliance with all Free Zone regulatory and economic substance requirements.
3. Maintain Comprehensive Financial Records
Accurate financial documentation and reporting are crucial for corporate tax compliance. Businesses must maintain detailed accounts, including invoices, contracts, and expense records, to substantiate income, deductions, and exemptions during tax filing and potential audits.
4. Adhere to Economic Substance Regulations
To benefit from preferential tax treatment, Meydan Free Zone entities engaged in relevant activities must meet economic substance requirements, demonstrating adequate physical presence and operational activities in the UAE. Failure to comply may lead to denial of tax benefits and penalties.
5. File Corporate Tax Returns Timely
All businesses registered in Meydan Free Zone are obligated to file their corporate tax returns within nine months of the end of their financial year. Timely and accurate submission, along with any tax payments, ensures compliance and avoids fines or interest on late payments.
Want to do business in a city that global investors are heavily bettting on?
With record-breaking investment inflows and a pro-business environment, Dubai has become the go-to launchpad for companies that want to scale smart.
If you’re looking to hop on the bandwagon, there’s one thing you should get right from the start: your corporate tax compliance.
Whether you’re setting up a new business or already operating from Meydan Free Zone, this corporate tax guide in the UAE will show you exactly how to stay tax-ready in 2025. Clear. Simple. No guesswork.
Understanding The UAE Corporate Tax System in 2025
Corporate tax has been active in the UAE since 1 June 2023, and by now, it’s a part of doing business.
Let’s tackle how this works:
- If your net profit is AED 375K or less - 0% tax is paid
- If your net profit is above AED 375K - A flat 9% on income over that threshold is paid
- Be registered with the Federal Tax Authority (FTA) and comply with FTA corporate tax guide
But the good news?
If your business is set up in a Qualified Free Zone like Meydan, you are eligible to pay 0% corporate tax, even if you earn more than AED 375K, provided you meet the requirements.
The UAE corporate income tax rate was introduced to stay ahead of compeititiveness, encourage growth, and attract global businesses, and it’s working. And if you choose Meydan Free Zone, you’ve got a kickstart in Dubai’s entrepreneurial game.
How You Can Qualify For 0% Corporate Tax With Meydan Free Zone
If you want to retain the 0% tax benefit, your business must meet the QFZP (Qualified Free Zone Person) criteria set by UAE law. The good news? Setting up with Meydan Free Zone gives you a built-in advantage.
Here’s what QFZP compliance looks like with Meydan:
- You earn qualifying income through business outside UAE, with other free zones, holding shares, and royalties from overseas clients, etc.,
- Your business should be based in Meydan Free Zone
- Maintaining audited financial statements
- Not doing business with mainland
- Fully-fledged compliance with FTA
We guide your license setup and activity selection to make sure you’re eligible from day one. Think zero ambiguity — just a clear path to no taxes, baked into your structure from day one.
UAE Corporate Tax Rates Guide By Business Type
Let’s break down the UAE corporate income tax rates, so you know exactly where your business stands.
If you’re unsure on how to calculate corporate tax in the UAE, this is how:
- Subtract AED 375K from your net profit
- Calculate 9% of the remaining net profit
- That’s your tax liability
Steps to Stay Compliant With UAE Corporate Tax
Staying on top of your taxes in 2025 doesn’t have to be complicated. Here’s what you need to do and how we make it easy:
Step 1: Register For Corporate Tax
Corporate tax registration in the UAE is mandatory, even if you qualify for 0%. At Meydan Free Zone, we take care of this for you from day one. On top of that, the corporate tax registration deadline in UAE is strictly enforced. And if you miss it, you might encounter a AED 10K fine.
Step 2: Classify Your Income
We help you figure out what qualifies for the 0% rate according to QFZP criteria, and flag what doesn’t.
Step 3: Keep Your Books In Order
Audited financial statements are a must. With Meydan Free Zone, you’ll be connected to audit-ready financial and banking partners who know the system inside out.
Step 4: File Your Return On Time
Your deadline will be 9 months after your financial year ends. For example, if your FY ends on 31 December 2024, your taxes must be filed by 30 Septermber 2025.
How Meydan Free Zone Simplifies Corporate Tax Compliance
With Meydan Free Zone, corporate tax compliance is built right into your setup from day one. This is how:
- We register your business with the Federal Tax Authority (FTA)
- We structure your license and business activities to align with QFZP criteria
- We flag activities that might disqualify your 0% corporate tax rate
- We support with audit-ready accounting and banking referrals
- We keep you updated on policy changes before they impact your business
In Conclusion
Staying compliant with corporate tax in the UAE is about getting your setup right from the start.
Whether you’re a solo founder, a booming startup, or expanding company, if you’re operating through Meydan Free Zone, you’ve already got the advantage.
From tax registration to staying eligible for 0% tax, we make compliance a part of your business, not a part of it.
FAQs
1. Do I need to register for corporate tax in the UAE?
Yes, all businesses must register with the Federal Tax Authority (FTA) even if you qualify for 0%. You don’t have to worry about this if you set up with Meydan Free Zone. We handle this for you from the time of setup, so you're compliant from day one.
2. Who qualifies for 0% corporate tax in the UAE?
Businesses set up in Qualified Free Zones like Meydan may qualify if they meet specific criteria. For example, like earning qualifying income and maintaining audited financials. The best part? We guide you through it step by step to make sure you remain eligible.
3. What is considered qualifying income for free zone companies?
Qualifying income includes earnings from overseas clients, other free zones, holding shares, and certain passive income like interest and royalties. At Meydan Free Zone, we help you structure your business to meet these rules.
4. How do I calculate my corporate tax in the UAE?
If your profit exceed AED 375K, apply 9% only to the amount above that threshold. If you stay within 375K, or qualify under Meydan Free Zone’s QFZP status, you can pay 0%.
5. Is there a corporate tax return guide UAE businesses should follow?
Yes. The corporate tax return guide UAE outlines deadlines, reporting formats, and filing steps. At Meydan Free Zone, we simplify the process and ensure you're aligned with FTA standards.
6. What is the corporate tax registration deadline in the UAE?
It's non-negotiable to register within the timeline set by the FTA. Late registration can lead to AED 10k in penalties. At Meydan Free Zone, we can handle this as part of your license process. No delays. No penalties.
7. Do I need audited financial statements for corporate tax in the UAE?
Yes, if you want to maintain 0% corporate tax status under the Qualified Free Zone regime, you’ll need to submit audited financials annually. Don’t worry — Meydan Free Zone connects you with trusted audit partners and helps you stay on track with reporting.
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