UAQ FTZ - Umm Al Quwain Free Trade ZoneSetup cost, licence types and visa rules

Tax treatment the authority publishes

• 0% Corporate Tax on Qualifying Income for a Qualifying Free Zone Person (QFZP) - conditional, not automatic
• 9% Corporate Tax on any income that is not Qualifying Income; the AED 375,000 zero-rate band does not apply to a QFZP
• 0% personal income tax in the UAE
• 100% repatriation of capital and profits, with no UAE exchange controls
• QFZP status requires adequate free zone substance, arm's length pricing, transfer pricing documentation, audited accounts and non-qualifying revenue within the de minimis limit (lower of AED 5,000,000 or 5% of revenue)
• Small Business Relief is NOT available to a Qualifying Free Zone Person
• VAT Designated Zone: goods entering from outside the UAE or moving between Designated Zones are generally outside the scope of 5% VAT (goods only - services are taxed normally)

Substance requirements

Federal position (applies to every UAE free zone): to claim the 0% Qualifying Free Zone Person rate a company must maintain adequate substance in the free zone - core income-generating activity carried out there, plus adequate assets, an adequate number of qualified full-time employees and adequate operating expenditure relative to that activity (Cabinet Decision No. 100 of 2023, Art. 8). Under Ministerial Decision No. 84 of 2025 every Qualifying Free Zone Person must prepare audited financial statements regardless of revenue; a free zone company that is not a QFZP needs audited accounts only where revenue exceeds AED 50,000,000. Economic Substance Regulations notifications and reports were cancelled for financial years ending after 31 December 2022 by Cabinet Decision No. 98 of 2024, so ESR is no longer a live annual filing. UBO disclosure under Cabinet Decision No. 109 of 2023 does still apply. Zone-level audit position: no primary source stating this zone's own audit requirement was retrievable during research. The audit_required flag is recorded as false because the field cannot express 'unknown'; do not read it as confirmation that no audit is required. The federal rules above apply in any case.

Customs treatment

This zone is recorded as a VAT Designated Zone. Goods imported into it from outside the UAE, and goods moved between Designated Zones, are generally outside the scope of 5% VAT while the conditions in the VAT Executive Regulations are met; goods released into the UAE mainland are treated as an import and attract 5% VAT plus applicable customs duty. Designated Zone status covers GOODS only - services supplied to UAE customers are subject to 5% VAT exactly as on the mainland. Designated Zone status derives from Cabinet Decision No. 59 of 2017 as amended and should be re-checked against the FTA's current list.

Profit repatriation

The UAE imposes no exchange controls and no restrictions on repatriating capital or profits from a free zone company, and there is no personal income tax on distributions to individuals. Corporate Tax is assessed on the company, not on the remittance.

Ownership

100% foreign ownership is permitted. No UAE national shareholder, local sponsor or service agent is required.

Local partner

Not required