What is a Qualifying Free Zone Person (QFZP)?
Lexicon Entry: Statutory Definition under Article 18
Feb 17, 2026
4 min read
Arakan Statutory Team
A **Qualifying Free Zone Person (QFZP)** is a juridical person organized in a Free Zone that meets specific criteria to benefit from a 0% Corporate Tax rate on Qualifying Income.
Statutory Criteria
To maintain QFZP status under Article 18, an entity must:
- Maintain **Adequate Substance** in the State.
- Derive **Qualifying Income** as specified in Cabinet Decisions.
- Not have made an election to be subject to Corporate Tax.
- Comply with **Transfer Pricing** requirements (Arm’s Length Principle).
"The loss of QFZP status is retroactive. If a breach is found during a 2026 audit, the 9% rate applies to the entire tax period, not just from the date of discovery."