UAE Free Zone Tax Benefits: Essentials Explained
Guide to 0% corporate tax benefits for qualifying free zone entities in 2026 and the conditions for maintaining tax exemption.
The exact change
Local file documentation is required for entities whose related-party transactions exceed AED 40 million, which also functions as the Local File revenue threshold.
Related Party Transactions disclosure form for taxpayers with related-party transactions exceeding AED 40 million in aggregate (AED 4 million per category); Local file for entities with revenue exceeding AED 200 million, or that are a Constituent Entity of an MNE Group.
Suggested change
Fixed the same transfer-pricing threshold conflation found in the UAE corporate tax guide, correctly separating the AED 200 million Local File trigger from the AED 40 million related-party-transactions disclosure trigger.
Why this is better
The AED 40 million related-party-transactions threshold triggers a separate disclosure form, not the Local File itself, which has its own AED 200 million revenue trigger; the article had conflated the two.
More by Emir Baycan in Uae Dubai
- Correction Dubai Payment Gateways for E-Commerce: 2026 Overview
- Correction Opening a Business Bank Account in UAE: Best Banks
- Correction Understanding UAE Crypto Regulations and VARA Framework
- Correction UAE Business Laws: Compliance Guide for Foreign Firms