The Federal Tax Authority published Decision No. 6 of 2026 on additional procedures for Qualifying Free Zone Persons (QFZPs). The decision is relevant to QFZPs carrying out the qualifying activity of distributing goods or materials in or from a Designated Zone.
Who should review the decision?
This is a targeted rule, not a new procedure for every Free Zone company. A business should check whether its activity, goods, location and customer arrangements fall within the defined qualifying distribution activity. The decision sets additional compliance procedures for the relevant tax periods beginning on or after 1 January 2026.
Practical preparation
- Map the flow of goods from import or purchase through storage and onward supply.
- Retain contracts, invoices, shipping and warehouse records, and evidence about customer resale or processing activity where relevant.
- Review whether an agreed-upon procedures report from an independent auditor is required for the business’s facts.
- Assign an owner to coordinate accounting records, operational evidence and auditor requests.
- Review the official decision before concluding that the activity qualifies for the Free Zone tax treatment.
Meeting the QFZP conditions depends on the full facts and applicable legislation. Businesses should not assume that Free Zone status by itself guarantees a 0% rate on all income.
Official source: FTA Corporate Tax legislation list (Decision No. 6 of 2026).
This summary is general information. Confirm the decision’s scope and requirements with the official text before relying on it.
