Is my free zone company really exempt from UAE corporate tax?

Not automatically — the 0% rate applies only to a qualifying free zone person, which requires meeting all the conditions: qualifying income from qualifying activities, adequate substance in the free zone, non-qualifying revenue within a small de minimis limit, audited financial statements, and transfer pricing compliance. Income from mainland customers is generally not qualifying income. If non-qualifying revenue exceeds the permitted limit, you can lose qualifying status entirely — not just pay tax on the mainland portion. Registration with the Federal Tax Authority and annual filing are required either way. With a mixed free zone and mainland model, your position needs to be calculated, not assumed. Full step-by-step guide: Free zone qualifying income and corporate tax.