# Meydan Free Zone tax rules every licensee should understand > Meydan Free Zone tax explained: corporate tax, VAT, QFZP rules, filing deadlines and e-invoicing duties for licensees. Read the guide and get pricing. Source: https://einvoicedirect.ae/free-zones-uae/meydan-free-zone-tax Last updated: 2026-06-05 Publisher: EInvoice Direct (Massive FZCO), UAE e-invoicing software. ## What is Meydan Free Zone tax? Meydan Free Zone tax refers to the corporate tax, value added tax (VAT) and compliance duties that apply to companies licensed in Meydan Free Zone, Dubai. Licensees can access a 0% corporate tax rate on qualifying income under the Qualifying Free Zone Person (QFZP) regime, while still paying 5% VAT and meeting standard UAE filing rules. This guide explains how Meydan Free Zone tax works in practice. It covers corporate tax bands, VAT registration thresholds, QFZP conditions, e-invoicing timelines and the penalties that apply if you miss a deadline. For a wider view of how all zones compare, see our hub on [UAE Free Zones: tax, compliance and e-invoicing](https://einvoicedirect.ae/free-zones-uae). ## Meydan Free Zone at a glance Meydan Free Zone is a Dubai-based zone known for fast licensing, flexi-desk packages and a popular base for consultancies, e-commerce sellers and holding companies. Like all UAE free zones, it sits inside the federal tax framework set by the Ministry of Finance (MoF) and the Federal Tax Authority (FTA). Being licensed in Meydan does not mean you are exempt from UAE tax. It means you may qualify for specific reliefs if you meet conditions in Federal Decree-Law 47 of 2022 and related Cabinet Decisions. ### Who typically licenses in Meydan - Consultancies and professional services firms - E-commerce traders and dropshippers - Holding companies for group structures - Marketing, media and technology startups - Trading companies serving regional clients ## Corporate tax for Meydan Free Zone companies UAE corporate tax applies to all mainland and free zone companies under Federal Decree-Law 47 of 2022. The standard rates are: | Taxable income or category | Rate | | --- | --- | | Taxable income up to AED 375,000 | 0% | | Taxable income above AED 375,000 | 9% | | Large multinationals (EUR 750M+ global revenue) | 15% Domestic Minimum Top-up Tax (DMTT) from January 2025 | | Qualifying Free Zone Person on qualifying income | 0% | | QFZP on non-qualifying income | 9% | ### Qualifying Free Zone Person (QFZP) status To benefit from the 0% rate on qualifying income, a Meydan licensee must meet all QFZP conditions. These include maintaining adequate substance in the UAE, earning qualifying income, complying with transfer pricing rules, preparing audited financial statements and not electing to be taxed at the standard rate. If any condition is missed, the company loses QFZP status for that tax period and the following four periods. The 9% rate then applies to all taxable income above AED 375,000. ### Small business relief Meydan companies with revenue up to AED 3 million in a tax period can elect for small business relief through 2026. Under this election, the company is treated as having no taxable income for the period. It still has to register and file a return, but no corporate tax is due. ## VAT obligations in Meydan Free Zone Meydan is not on the FTA list of Designated Zones for VAT, so most supplies made by Meydan licensees are treated like mainland supplies. VAT applies at the standard 5% rate introduced under Federal Decree-Law 8 of 2017. ### VAT registration thresholds - Mandatory registration: taxable supplies above AED 375,000 in the last 12 months or expected in the next 30 days - Voluntary registration: taxable supplies or expenses above AED 187,500 - VAT returns are due within 28 days of the end of each tax period ### Common VAT scenarios for Meydan companies | Transaction | VAT treatment | | --- | --- | | Sales to UAE customers | 5% standard rate | | Exports of goods or services outside the GCC | 0% if conditions met | | Services to other GCC states | Depends on customer status, often 5% | | Imports of services | Reverse charge by recipient | ## E-invoicing rules for Meydan licensees The UAE is rolling out a Peppol 5-corner Decentralized Continuous Transaction Control and Exchange (DCTCE) model. Invoices are exchanged in the PINT AE format through an Accredited Service Provider (ASP) and reported to the FTA in near real time. The timeline confirmed by the Ministry of Finance is: | Milestone | Date | | --- | --- | | Pilot phase | Q2 2026 | | ASP appointment deadline for businesses with AED 50M+ revenue | October 30, 2026 | | Phase 1 mandatory go-live (AED 50M+ revenue) | January 1, 2027 | | Small and medium businesses (under AED 50M) | July 1, 2027 | | Government entities | October 1, 2027 | ### What this means for a Meydan company Even if your Meydan business is small, you will need an accredited ASP appointed by July 1, 2027 for business to business (B2B) and business to government (B2G) invoices. Large Meydan licensees crossing AED 50 million revenue must appoint an ASP by October 30, 2026 and go live on January 1, 2027. ### Penalties for non-compliance Cabinet Decision 106 of 2025 sets penalties for e-invoicing breaches at AED 2,500 to AED 50,000 per violation. These apply to issues such as missing invoices, late submissions and use of an incorrect format. The legal basis sits in Federal Decree-Law 16 of 2024 and Federal Decree-Law 17 of 2024, supplemented by Ministerial Decisions 243 and 244 of 2025. ## Filing calendar for a Meydan Free Zone company | Obligation | Deadline | | --- | --- | | Corporate tax registration | Per FTA timeline based on licence issue month | | Corporate tax return and payment | Within 9 months of financial year end | | VAT return | Within 28 days of tax period end | | Audited financial statements (QFZP) | Prepared annually, kept on file | | E-invoicing go-live (AED 50M+) | January 1, 2027 | | E-invoicing go-live (under AED 50M) | July 1, 2027 | ## Substance and record keeping in Meydan QFZP status requires adequate substance. For a Meydan company this generally means having qualified staff, an office presence in the free zone and core income generating activities carried out in the UAE. A flexi-desk can be acceptable if the activity is light, but the FTA looks at the actual operation, not just the licence. ### Records you should keep - Trade licence and amendments - Ultimate beneficial owner (UBO) register - Audited financial statements - Transfer pricing documentation for related party transactions - VAT invoices in PINT AE format once e-invoicing applies - Tax Registration Number (TRN) certificates for VAT and corporate tax ## How Meydan compares with other UAE free zones Tax rates are federal, so they are the same in every zone. What changes is the licensing cost, the activity list, the substance expectations and whether the zone is a Designated Zone for VAT. For other deep dives, see our guides on [DMCC tax compliance](https://einvoicedirect.ae/free-zones-uae/dmcc-tax-compliance), [DIFC tax compliance](https://einvoicedirect.ae/free-zones-uae/difc-tax-compliance), [IFZA tax compliance](https://einvoicedirect.ae/free-zones-uae/ifza-tax-compliance) and [JAFZA tax compliance](https://einvoicedirect.ae/free-zones-uae/jafza-tax-compliance). ### Key differences to check before choosing Meydan | Factor | Meydan | What to verify | | --- | --- | --- | | Designated Zone for VAT | No | Compare with JAFZA which is a Designated Zone | | Regulator | Meydan Free Zone Authority | DIFC and ADGM use common law systems | | Activities | Broad commercial and services list | Match your business model to the activity codes | | Office requirement | Flexi-desk packages available | Substance still needed for QFZP | ## Compliance checklist for Meydan Free Zone tax - Confirm your activity is on the Meydan licence and matches your invoices - Register for corporate tax with the FTA and obtain a TRN - Assess whether you meet QFZP conditions or should elect for small business relief - Register for VAT once you cross AED 375,000 in taxable supplies - Prepare audited financial statements annually - Set up transfer pricing files for related party transactions - Plan your e-invoicing go-live based on your revenue band - Appoint an accredited service provider from the Ministry of Finance's published ASP list ## Where to read the official rules Always check the source documents before making a decision. Useful starting points are the [UAE Ministry of Finance](https://mof.gov.ae), the [Federal Tax Authority](https://tax.gov.ae) and the [UAE MoF e-invoicing portal](https://einvoicing.mof.gov.ae). For more context on free zone obligations across the country, return to our hub on [UAE free zones tax and compliance](https://einvoicedirect.ae/free-zones-uae), or compare with [ADGM tax compliance](https://einvoicedirect.ae/free-zones-uae/adgm-tax-compliance) and [Shams tax compliance](https://einvoicedirect.ae/free-zones-uae/shams-tax-compliance). ## Bring your Meydan compliance into one place If you want a clear path to corporate tax filings, VAT returns and the 2027 e-invoicing mandate, EInvoice Direct can help. An accredited service provider is included with the software at no extra charge, and the platform connects to Zoho Books, QuickBooks, Xero, Tally, Sage, Odoo and major ERPs like SAP, Oracle NetSuite and Microsoft Dynamics 365. To [get UAE e-invoicing pricing](https://einvoicedirect.ae/for-businesses#contact), contact our team and we will map the right setup to your Meydan licence. ## Frequently asked questions ### Is Meydan Free Zone tax free? No. Meydan Free Zone companies are inside the UAE corporate tax system under Federal Decree-Law 47 of 2022. They can access a 0% rate on qualifying income if they meet Qualifying Free Zone Person conditions, but non-qualifying income above AED 375,000 is taxed at 9%. VAT at 5% also applies to most sales made by Meydan licensees. ### Is Meydan Free Zone a Designated Zone for VAT? No. Meydan Free Zone is not on the Federal Tax Authority list of Designated Zones for VAT purposes. This means supplies of goods and services made from Meydan are generally treated like mainland UAE supplies and attract 5% VAT, subject to normal rules on exports, zero rating and exemptions. ### Do Meydan companies need to register for corporate tax? Yes. Every Meydan Free Zone company must register for UAE corporate tax with the Federal Tax Authority and obtain a Tax Registration Number, even if it expects to pay 0% under the Qualifying Free Zone Person regime or use small business relief. Registration deadlines follow the FTA schedule based on licence issue month. ### When does e-invoicing apply to Meydan Free Zone companies? Meydan licensees with annual revenue of AED 50 million or more must appoint an accredited service provider by October 30, 2026 and go live on January 1, 2027. Smaller Meydan companies must comply by July 1, 2027. All B2B and B2G invoices must use PINT AE format on the Peppol 5-corner DCTCE network. ### Can a Meydan company use small business relief? Yes, if its revenue does not exceed AED 3 million in the relevant tax period and prior periods. The election is available through 2026 under the corporate tax law. The Meydan company is treated as having no taxable income for that period, but it still has to register for corporate tax and file a return on time. ### What are the penalties for missing UAE e-invoicing rules in Meydan? Cabinet Decision 106 of 2025 sets penalties between AED 2,500 and AED 50,000 per violation. These cover issues such as failing to issue an electronic invoice, using the wrong format, late submission to the Federal Tax Authority or not appointing an accredited service provider. Penalties can apply per invoice, so they add up quickly. ### Do Meydan Free Zone companies need audited financial statements? Yes, if they want to claim Qualifying Free Zone Person status and the 0% corporate tax rate on qualifying income. Audited financial statements are a condition under the corporate tax rules. Even Meydan companies that do not claim QFZP status often need audits for licence renewal, bank requirements or transfer pricing documentation. --- This content is informational and is not tax, legal, or financial advice. For UAE e-invoicing pricing, see https://einvoicedirect.ae/for-businesses#contact