UAE Corporate Tax Compliance in Meydan Free Zone

UAE Corporate Tax Compliance in Meydan Free Zone

Corporate Tax Registration Requirement

All Meydan Free Zone companies must register for Corporate Tax with the Federal Tax Authority (FTA), regardless of:

• Profit or loss position

• Business activity level

• Eligibility for 0% tax rate

• Even dormant or non-revenue-generating entities are required to register.

• Failure to register on time may result in administrative penalties, even if no tax is ultimately payable.

Qualifying Free Zone Person (QFZP) – 0% Corporate Tax Eligibility

To enjoy the 0% Corporate Tax rate, a Meydan Free Zone company must qualify as a Qualifying Free Zone Person (QFZP).

Key Conditions Include:

• Maintaining adequate economic substance in the UAE

• Conducting Qualifying Activities as prescribed under UAE tax regulations

Earning Qualifying Income, such as income from:

• Transactions with other Free Zone entities

• Non-UAE customers

• Complying with transfer pricing regulations

• Preparing and maintaining audited financial statements

• Not undertaking Excluded Activities (unless within allowed thresholds)

• If a company fails to meet any QFZP condition, it may lose the 0% benefit for the current tax period and the next four years, with income taxed at the standard 9% rate.

Corporate Tax Return Filing

Every Meydan Free Zone company must file an annual Corporate Tax Return, even if:

• All income qualifies for 0% tax

• The company incurred losses

• No tax is payable

Key Filing Timelines:

• Tax return to be filed within 9 months from the end of the financial year

• Any payable tax must be settled within the same period Accurate financial data and proper classification of qualifying vs non-qualifying income are essential.

Accounting Records & Audited Financial Statements

Meydan Free Zone companies are required to:

• Maintain proper books of accounts

• Prepare IFRS-compliant financial statements

• Retain records for at least 7 years

• Audited financial statements are a critical component for:

• Corporate tax compliance

• Qualifying Free Zone status

• Transfer pricing documentation

Transfer Pricing & Related Party Compliance

If a Meydan Free Zone company conducts transactions with:

• Related parties

• Group companies

• Shareholders or affiliates

• It must ensure transactions are conducted at arm’s length and maintain appropriate transfer pricing documentation, including disclosure forms where applicable.

Penalties for Non-Compliance

• Non-compliance with UAE Corporate Tax obligations may lead to:

• Monetary penalties

• Loss of Free Zone tax benefits

• FTA audits and reassessments

• Reputational and operational risks

• Proactive compliance is essential to avoid costly errors.

How Gupta Accountants Supports Meydan Free Zone Businesses

At Gupta Accountants, we offer comprehensive corporate tax solutions for Meydan Free Zone entities, including:

• Corporate Tax registration with FTA

• Evaluation of Qualifying Free Zone Person status

• Corporate Tax return preparation and filing

• IFRS accounting and financial statement preparation

• Audit coordination

• Transfer pricing advisory and documentation

• Ongoing tax compliance and advisory support

• Our team ensures your business remains fully compliant while maximising available tax benefits.