# What are the consequences when a free zone person ceases to be a qualifying free zone person?

**URL:** <https://uaectfaqs.com/t/what-are-the-consequences-when-a-free-zone-person-ceases-to-be-a-qualifying-free-zone-person/59>\
**Category:** Free Zones\
**Created:** [September 10, 2024, 5:25am UTC](https://uaectfaqs.com/t/what-are-the-consequences-when-a-free-zone-person-ceases-to-be-a-qualifying-free-zone-person/59 "2024-09-10T05:25:04Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![FAME](https://yyz1.discourse-cdn.com/flex009/user_avatar/uaectfaqs.com/fame/32/7_2.png) [@FAME](https://uaectfaqs.com/u/FAME)\
**Post date:** [September 10, 2024, 5:25am UTC](https://uaectfaqs.com/t/what-are-the-consequences-when-a-free-zone-person-ceases-to-be-a-qualifying-free-zone-person/59/1 "2024-09-10T05:25:04Z")

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What are the consequences when a free zone person ceases to be a qualifying free zone person?

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**Author:** ![FAME](https://yyz1.discourse-cdn.com/flex009/user_avatar/uaectfaqs.com/fame/32/7_2.png) [@FAME](https://uaectfaqs.com/u/FAME)\
**Post date:** [September 10, 2024, 5:25am UTC](https://uaectfaqs.com/t/what-are-the-consequences-when-a-free-zone-person-ceases-to-be-a-qualifying-free-zone-person/59/2 "2024-09-10T05:25:17Z")

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Qualifying Free Zone person will cease to qualify for the status of free zone for a period of 5 years and will be treated ordinary taxable person and corporate tax at the rate of 9% will apply to all of his income after applying threshold limit of AED 375,000.