# QFZP de minimis calculator

> A Qualifying Free Zone Person keeps its 0% corporate tax rate only if its non-qualifying revenue is no more than 5% of total revenue or AED 5 million, whichever is lower. Failing the test means standard 9% rates on all taxable income for that tax period and the following four.

Interactive calculator: https://www.countify.ae/tools/qfzp-de-minimis-calculator · Updated 2026-10-14 · Countify UAE

## De minimis limits by revenue

The limit is 5% of revenue, capped at AED 5 million.

| Revenue | De minimis limit (lower of 5% and AED 5m) |
| --- | --- |
| AED 2,000,000 | AED 100,000.00 |
| AED 12,000,000 | AED 600,000.00 |
| AED 100,000,000 | AED 5,000,000.00 |
| AED 250,000,000 | AED 5,000,000.00 |

The cap bites from AED 100 million of revenue.

## What counts as non-qualifying revenue

Revenue from qualifying activities (manufacturing, trading of qualifying commodities, logistics, treasury and financing to related parties, headquarters services and others) and from transactions with other free zone persons is qualifying. Most revenue from mainland customers for services is non-qualifying. Revenue from immovable property and certain intellectual property is excluded from the test altogether.

## The other QFZP conditions

De minimis is one of several conditions. A QFZP must also keep adequate substance in the free zone, prepare [audited financial statements](https://www.countify.ae/tools/audit-requirement-checker), follow the transfer pricing rules and not elect to be taxed at standard rates. Our [QFZP guide](https://www.countify.ae/blog/qualifying-free-zone-person-uae) covers each one.

## Legal basis

- Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023 (qualifying income and activities) (https://mof.gov.ae/corporate-tax/)

## Frequently asked questions

### What is the de minimis rule for free zone companies?

Non-qualifying revenue must not exceed the lower of 5% of total revenue or AED 5 million in the tax period.

### What happens if I fail the de minimis test?

You lose QFZP status for that period and the next four, so all taxable income is taxed at 0% up to AED 375,000 and 9% above for 5 tax periods.

### Is mainland revenue always non-qualifying?

Not always. Some activities, such as certain distribution from a designated zone, can be qualifying even with mainland customers. Check each revenue stream.