Gold & Diamond Park Corporate Tax & 0% QFZP Rules 2026
By UAE Freezone Finder Team | Updated October 2026
Many jewellers, bullion traders and diamond dealers choose Gold & Diamond Park in Dubai because the zone is built around the trade. Since the introduction of UAE corporate tax, the next question is always the same: does a licence in the park mean no tax? The honest answer is “sometimes, for some income”. This guide explains how Gold & Diamond Park corporate tax works in practice, what the 0% QFZP regime actually requires, and which costs you should plan for at set-up.
The rules are set by federal law and by decisions of the Ministry of Finance and Cabinet, not by the free zone. They are also detailed and subject to change, so treat this article as a planning guide and not as tax advice.
Does a Gold & Diamond Park licence mean you pay 0% corporate tax?
The licence alone does not decide your tax rate
Holding a free zone licence does not switch off corporate tax. A free zone company is a taxable person like any other, and the 0% rate applies only to the part of its income that qualifies. The company must first be a Qualifying Free Zone Person, and then only its qualifying income is taxed at 0%.
The two rates you need to know
For a company that qualifies, qualifying income is taxed at 0%. Income that does not qualify is taxed at 9%. A free zone company that is not a QFZP, or that loses the status, falls under the standard regime: 0% on taxable income up to AED 375,000 and 9% on taxable income above AED 375,000.
Why jewellery and bullion businesses need extra care
Gold and diamond businesses often mix wholesale and retail, sell to buyers in different emirates and handle both physical goods and investment metal. Each of those choices can change how an invoice is classified for tax. A business model that looks simple commercially can be complicated from a corporate tax point of view.
What is a Qualifying Free Zone Person?
A QFZP must meet a set of cumulative conditions
To be treated as a QFZP, a free zone company has to satisfy all of the conditions together, not just most of them. In broad terms these are:
- It maintains adequate substance in the free zone, meaning real people, premises and decision-making in the UAE that fit the activity.
- It derives qualifying income, as defined by the Ministry of Finance.
- It keeps proper accounting records and prepares audited financial statements.
- It complies with the transfer pricing rules for transactions with related parties.
- It has not chosen to be taxed under the standard regime.
- It stays within the limit on income that does not qualify, often called the de minimis rule.
If any condition fails, the company can lose QFZP status and be taxed under the standard regime for the period in which it fails and for later periods set out in the law. This is why ongoing compliance matters more than the day-one licence.
Substance is not the same as having a desk
A registered address supports a licence, but substance is about whether the core income-generating activities are actually carried out in the UAE by adequate staff, with adequate premises and spending. For a trading or processing business in the park, think about who negotiates deals, who manages stock and who makes the key decisions. A flexi-desk may be enough for some structures and not for others, so assess it against your own activity.
Audited accounts are part of the regime
A QFZP is expected to prepare audited financial statements. Budget for an audit from the first year, and keep your books in a form an auditor can work with. Retaining invoices, contracts and stock records from the start will save time and cost later.
Which income counts as qualifying income for a gold or diamond business?
Qualifying income comes from defined qualifying activities
Qualifying income generally includes income from transactions with other free zone persons, and income from certain qualifying activities carried out with other parties. The qualifying activities are set out in Ministry of Finance decisions and include areas such as manufacturing and processing of goods, trading of qualifying commodities, holding of shares and other investments, and certain logistics and distribution activities. Your activity must be on the list, and the way you perform it must match the conditions attached to it.
Check whether your goods fall within the commodity definition
Trading in qualifying commodities is a common route for metal businesses, but the definition is specific. Do not assume that every precious metal or every stone product is covered. Ask your adviser to map your product lines against the current ministerial decision, and document the conclusion.
Sales to individuals are a known pressure point
Income from selling to individuals, which would include ordinary retail jewellery sales to consumers, is generally treated as an excluded activity and does not qualify for the 0% rate. A park-based company with a retail counter may therefore have both qualifying and non-qualifying income in the same year. Separate bookkeeping for each stream makes the numbers far easier to defend.
Mainland customers need a separate check
Selling to a customer on the UAE mainland is not automatically fatal to QFZP status, but the income is only qualifying if it comes from a qualifying activity that is not excluded. Where it does not qualify, it counts towards the de minimis limit. Track the split between free zone customers, mainland customers and overseas customers from day one.
| Type of income | Typical treatment for a QFZP | What to check |
|---|---|---|
| Sales to other free zone companies | Often qualifying, if the goods or services are not an excluded activity | Customer is a free zone person and the activity is not excluded |
| Manufacturing or processing of goods | Qualifying activity | Evidence that processing really takes place and substance supports it |
| Trading of qualifying commodities | Qualifying activity, within the definition | Whether the metal or stone falls within the commodity definition |
| Retail sales to individuals | Generally excluded from qualifying income | Separate records and the effect on the de minimis limit |
| Sales to mainland businesses | Qualifying only if from a qualifying activity | Nature of the activity and the share of total income |
What happens if non-qualifying income grows too large?
The de minimis rule is a ceiling, not a target
A QFZP may earn a limited amount of non-qualifying income without losing the status, as long as it stays under the de minimis thresholds set by the Ministry of Finance. If the company exceeds them, it can lose QFZP status for the tax period and be taxed under the standard regime. The thresholds are defined by reference to both a percentage of total revenue and a fixed amount, so check the current decision rather than relying on a rule of thumb from a forum post.
Losing the status has lasting consequences
The loss of QFZP status is not limited to a single year. The law applies the standard regime to the period of the breach and to later periods set out in the legislation, so a mistake in one year can affect planning for several. Monitor the split between qualifying and non-qualifying income every quarter, not only at year end.
Large groups face an additional layer
Companies that belong to large multinational groups may fall within the UAE’s domestic minimum top-up tax regime, which is linked to a 15% minimum effective rate. For those groups the 0% outcome may not be the final result. If your park entity is part of a large international group, raise this with your tax adviser early.
How do you register and stay compliant after set-up?
Register with the Federal Tax Authority
Free zone companies are generally required to register for corporate tax with the Federal Tax Authority, even where they expect to pay 0%. Registration is done online through the authority’s portal. Check the Federal Tax Authority website for the current registration and filing requirements, and note the deadlines that apply to your licence date and financial year.
File a return every year
A QFZP still files an annual corporate tax return. The return is where you declare which income is qualifying and which is not, so it is also where mistakes become visible. Keep supporting schedules for every figure.
Keep records for substance and transfer pricing
Maintain tenancy documents, staff contracts, payroll records, board minutes and related-party agreements. If you trade with connected companies, document the pricing basis. These records are the evidence behind your QFZP position if the authority asks questions. General guidance and updates from the Ministry of Finance are a useful reference point when the rules are updated.
Review the position whenever the business changes
A new product line, a new customer type or a move from wholesale to retail can change your tax result. Review the QFZP analysis whenever the business model changes, and not only at renewal.
What does it cost to set up in Gold & Diamond Park?
Indicative figures reported for Gold & Diamond Park
The figures below were reported as of 1 August 2026 and are indicative only. They must be confirmed with the free zone authority or against a current written quote before you budget, because fees change and depend on your activity and requirements.
| Item | Indicative figure reported | Note |
|---|---|---|
| Registration fee | AED 2,500 | Reported as of 1 August 2026; confirm with the free zone |
| Trade licence (annual) | AED 14,000 | Reported as of 1 August 2026; confirm with the free zone |
| Flexi-desk (annual) | AED 8,500 | Reported as of 1 August 2026; confirm with the free zone |
| Residence visa | AED 3,500 | Reported as of 1 August 2026; confirm with the free zone |
| Estimated total (one visa, flexi-desk) | AED 28,500 | Reported as of 1 August 2026; an indicative estimate, not a quote |
These figures do not include tax compliance costs
Corporate tax registration, annual returns, audited financial statements and professional advice are separate from the free zone fees above. Ask your adviser for a written estimate, and do not assume that a 0% rate means zero compliance cost.
Other costs depend on your business
Costs for larger premises, additional visas, activity approvals, insurance, banking and security arrangements vary by business. Gold and diamond businesses may also face additional compliance obligations linked to dealing in precious metals and stones, such as anti-money-laundering requirements, which should be discussed with your adviser. You can compare current options on UAE Freezone Finder and request a tailored quote to see which items apply to you.
Is Gold & Diamond Park the right choice for your tax position?
It suits businesses that work inside the trade
The park is attractive for businesses that want to be close to the jewellery and diamond trade, with suppliers, buyers and service providers in the same place. That commercial fit can be a strong reason to choose it, independent of the tax result.
Do not choose a zone on the 0% headline alone
The 0% rate is conditional. A business that sells mostly to consumers, or that has little real activity in the UAE, may find that few of its profits qualify. In that case the commercial and operational advantages of the zone should drive the decision, not the headline rate.
Test your numbers before you commit
Before applying, write down your expected customers, products, staffing and related-party dealings, and ask a tax adviser to test them against the QFZP conditions. If you want to compare Gold & Diamond Park with other zones that have different licence structures, request a free quote and we can help you shortlist the right options.
Frequently Asked Questions
Do Gold & Diamond Park companies pay corporate tax?
Yes, they are within the scope of UAE corporate tax like other taxable persons. A company that qualifies as a QFZP pays 0% on its qualifying income and 9% on income that does not qualify. A company that does not qualify is taxed under the standard regime.
What does QFZP mean?
QFZP stands for Qualifying Free Zone Person. It is a free zone company that meets all the conditions in the corporate tax law, including adequate substance, qualifying income, audited accounts and transfer pricing compliance. Only a QFZP can benefit from the 0% rate on qualifying income.
Is retail jewellery income taxed at 0%?
Generally not. Sales to individuals are usually treated as an excluded activity, so that income does not qualify for the 0% rate. Whether your overall status survives depends on how large that income is compared with the de minimis limits, so confirm your numbers with an adviser.
Do I still need to register for corporate tax if I expect to pay 0%?
In general, yes. Free zone companies are required to register with the Federal Tax Authority and file an annual return even when they expect a 0% result. Check the authority’s website for current deadlines and requirements.
How much does it cost to set up in Gold & Diamond Park?
Figures reported as of 1 August 2026 include a registration fee of AED 2,500, an annual trade licence of AED 14,000, a flexi-desk at AED 8,500 a year and a residence visa at AED 3,500, with an indicative total of AED 28,500 for one visa on a flexi-desk. These are indicative and must be confirmed with the free zone authority or a current quote.
Ready to set up your UAE freezone? Get a free consultation →
