Despite the UAE introducing a 9 percent federal corporate tax in 2023, Dubai’s free zones retain a powerful drawcard for foreign founders: a guaranteed 0 percent corporate-tax holiday on qualifying income until at least 31 December 2071. For Australian entrepreneurs eyeing a Middle-East hub, choosing the right zone can lock in five decades of tax certainty as long as you meet the substance and transaction rules that define a Qualifying Free Zone Person.

Below we compare the ten Dubai free zones that currently publish a 0 percent commitment through 2071 and outline the practical pros and cons for Australians setting up or relocating a business.

Understanding the 2071 Corporate-Tax Exemption

1. What exactly is tax-free? A zone can levy 0 percent on qualifying income derived from activities inside the zone or with overseas counterparties. Non-qualifying mainland income is taxed at 9 percent.
2. Does the pledge really last until 2071? Yes. Ministerial Decision 139 of 2023 confirmed that free-zone incentives approved before 31 Jan 2021 are protected for 50 years from the date of the original Cabinet Resolution (24 Oct 2021). Individual zones have issued alignment letters that extend until 2071.
3. Key conditions for founders Maintain adequate economic substance within the zone (office, staff, management), transact at arm’s length, file audited accounts and submit an annual corporate-tax return (even at 0 percent).

For a step-by-step incorporation checklist, see our Ultimate Guide to Dubai Free Zone Company Setup for Australians.👉 Read guide

Top 10 Dubai Free Zones With 0 percent Corporate Tax Until 2071

AUD conversions use 1 AED = 0.41 AUD (Aug 2025) and exclude visa and office costs. Figures are guidance, always request a current quotation.

1. Dubai Multi Commodities Centre (DMCC)

• 24,000+ companies, including 600+ Australian-owned entities.
• Prestigious Free Zone of the Year (fDI Magazine) 9 years running.
• Crypto-business licence, dual licences for mainland trading, and zero paid-up capital for most activities.

Sydney-based coffee importer Orion Beans Pty Ltd opened a DMCC subsidiary in 2024 and reports a 12-day incorporation, 0 percent profit tax and same-day FX transfers via Mashreq NeoBiz.

2. International Free Zone Authority (IFZA)

• Low-cost, high-speed licensing entirely online.
• Accepts foreign corporate shareholders and intellectual-property holding.
• SmartDesk package satisfies ESR with one flexi-desk and two resident visas.

Compare IFZA against DMCC in our dedicated e-commerce matchup 👉 Read comparison

3. Dubai International Financial Centre (DIFC)

• Common-law jurisdiction with its own regulator (DFSA) and courts.
• 0 percent corporate tax on qualifying non-mainland income, yet still able to manage GCC clients under an Innovation Testing Licence.
• Popular for family offices and VC funds seeking AUD-denominated feeder structures.

“DIFC gave us Singapore-level governance without the 17 percent tax drag.” — ​Andrew King, Brisbane-based fintech founder (2025 interview).

4. Dubai Silicon Oasis (DSO)

DSO’s i-Hub provides subsidised labs, cloud credits and co-working for deep-tech start-ups. Post-incorporation, you can upgrade to an on-premises facility that meets substance tests without relocating your entire team from Australia.

5. Dubai Airport Freezone (DAFZ)

DAFZ companies clear goods straight into transit areas at DXB within two hours. Ideal for Aussie pharma exporters that need cold-chain integrity and zero customs duty on re-exports.

6. Dubai CommerCity

The world’s first e-commerce free zone bundles warehousing, last-mile delivery and returns processing in the licence fee. Australian D2C brands avoid double shipping by keeping bulk inventory in bonded storage.

7. Dubai South

With the Expo City Phase II build-out, Dubai South remains a decade-long infrastructure hotspot. Founders can add onshore logistics permits while maintaining free-zone exemption for overseas revenue.

8. Meydan Free Zone

Fully paperless portal issues trade licences in half a day once KYC clears. A popular entry point for solo consultants who later migrate to a larger zone when headcount grows.

9. Jebel Ali Free Zone (JAFZA)

JAFZA’s corporate-tax holiday originally runs to 2085 but is capped at the federal 2071 window. Heavy industry players appreciate single-window customs and energy subsidies.

10. Dubai Media City & Internet City

TECOM Group’s sister zones share a Qualifying Free Zone Person definition. Media City holds regional broadcasting rights while Internet City hosts multinationals like Atlassian and Canva MENA.

How to Preserve Your 0 percent Status

• Lease adequate office space or a flexi-desk inside the same zone and record a lease agreement.
• Hire minimum full-time staff (usually one director or manager) under free-zone visas. See our visa rules guide 👉 Read visa guide
• Conduct substance-generating activities inside the zone: board meetings, key contract signings, accounting.
• Segregate mainland transactions into a taxed branch or bill through a local distributor.
• File a corporate-tax return each year even if the liability is zero.

Australian Tax Considerations

• Controlled Foreign Company (CFC) rules: UAE-incorporated entities owned 40+ percent by Australian residents may still be attributed profits. Structure carefully.
• Double Tax Agreement: Australia and the UAE concluded a treaty in late 2024 that enters into force for the 2026–27 income year, offering a foreign-income-tax offset on any mainland tax but does not override CFC.
• Permanent Establishment: Running fulfilment or sales teams in Australia could create a taxable PE. Keep management and contracts in Dubai where possible.

For a deeper dive, see Zero Income Tax in the UAE: Myth vs Reality for Aussie Entrepreneurs.👉 Read article

Frequently Asked Questions

Can I keep 0 percent tax if I invoice Australian customers? Yes, provided the income is classified as export of services and you meet free-zone substance rules. Australian tax residency tests may still apply.

Do I need a physical office to qualify? In most zones a flexi-desk is sufficient. Some, like DIFC, require a fitted office once headcount exceeds three.

What happens after 2071? The UAE Cabinet has not announced a post-2071 policy. Founders should expect regular renewals but plan for potential changes.

Which zone is best if I want a Golden Visa? DMCC, DIFC and Meydan issue partner visas that are convertible into 10-year Golden Visas once share capital exceeds AED 2 million.

Can I switch zones later? You can migrate a company by cancelling the existing licence and re-incorporating. Transfer fees and visa cancellations apply, so choose carefully upfront.

Ready to Lock in 0 Percent Tax for the Next 46 Years?

Dubai Invest has incorporated more than 320 Australian-owned entities across DMCC, DIFC, IFZA and seven other zones. Our bilingual consultants handle every step remotely—from pre-screening documents to opening your Dubai bank account—so you can focus on growth.

Book a free 30-minute strategy call today and get a personalised zone-selection matrix plus a fixed-fee quotation within 24 hours.

Schedule my call