Tax Advisory, Accounting & Audit in Ajman Free Zone (AFZ)

1. Qualifying Free Zone Person (QFZP 0%) Conditions

Under Cabinet Decision No. 55 of 2023 and Ministerial Decision No. 139 of 2023, entities licensed in Ajman Free Zone (AFZ) can maintain a 0% tax rate on Qualifying Income only if they strictly meet:

• Derive qualifying income from transactions with other Free Zone persons or approved qualifying activities.
• Maintain adequate economic substance (full-time qualified employees and operating expenditures in the UAE).
• Prepare mandatory audited financial statements under International Financial Reporting Standards (IFRS).
• Comply with UAE Transfer Pricing regulations (Arm's length principle and documentation).
• Meet the De Minimis requirement: non-qualifying revenue must not exceed the lower of 5% of total revenue or AED 5,000,000.

2. VAT & Customs Considerations in Ajman Free Zone (AFZ)

VAT registration with the FTA is legally required when taxable supplies and imports exceed AED 375,000 over 12 months. Our licensed tax agents manage VAT registrations, quarterly return filings, and import VAT deferrals directly on your FTA EmaraTax portal.