0% vs 9% Exposure &
High-Impact Triggers
For many businesses, especially Free Zone entities, small compliance failures can result in disproportionate tax outcomes.
This checklist highlights high-impact Corporate Tax risk triggers that frequently lead to reassessment or loss of preferred tax position.
Key Risk Areas Covered
Free Zone Qualification Risk
- Non-qualifying revenue not monitored against de minimis limits
- Revenue streams not segregated between qualifying and non-qualifying
- Transactions with natural persons not reviewed for excluded activity exposure
Substance & CIGA Alignment
- Core Income Generating Activities not clearly performed in the UAE
- Insufficient people, assets, or expenditure to support income
- Governance and decision-making evidence gaps
Related Party & Pricing Risk
- Related party services not benchmarked to arm’s length
- Missing or weak intercompany agreements
- Inconsistent invoicing and delivery evidence
Add-Back & Deductibility Risk
- Fines and penalties deducted incorrectly
- Personal expenses mixed with business costs
- Customer entertainment treated inconsistently
When This Checklist Matters Most
Get the Risk Checklist
Contact us for the full checklist and a short call about your answers.
Disclaimer: This checklist is for general information only and does not constitute tax advice.
Protect Your Position
If any risk applies:
A confidential CT risk review can prevent unexpected 9% exposure.
All engagements handled with strict confidentiality.
What does the Corporate Tax Risk Checklist do?
This checklist identifies the corporate tax positions most likely to change your tax bill, especially for Free Zone companies relying on the 0% rate. It covers Free Zone qualification, substance and core income-generating activities, related-party pricing and deductibility.
How to use it
- Go through each risk area and mark the ones that apply.
- For each, check whether your position and evidence would hold if reviewed.
- Address the areas that could move income from 0% to 9% first.
Corporate Tax Risk Checklist: questions and answers
Why do Free Zone companies need to check their status?
A Qualifying Free Zone Person may pay 0% on qualifying income, but only while it meets the conditions, including adequate substance and limits on non-qualifying revenue. Losing the status can move income to the 9% rate.
Is this the same as the health checklist?
No. The health checklist tests your computation and evidence; this one looks for positions that could change the tax result.
Is the result tax or financial advice?
No. The result is an estimate for planning, based only on the figures and answers you enter. It is general information, not legal, tax or financial advice. For a decision, have your position reviewed against your full facts.
Related
Want a second opinion on your result? WhatsApp 058-2754282 or send a request.
General information only, not legal or tax advice.
Valorin is an independent advisory firm, not affiliated with the FTA or MoF.