What is De Minimis Requirement?

What is De Minimis Requirement?

The de minimis requirements shall be considered to be satisfied where the non-qualifying Revenue derived by the Qualifying Free Zone Person in a Tax Period does not exceed the lower of the following:

a) 5 % of the total Revenue of the Qualifying Free Zone Person in that Tax Period; or

b) AED 5 million

The following Revenue shall not be included in the calculation of non-qualifying Revenue and Total Revenue:

a) Revenue attributable to immovable property located in a Free Zone derived from the transactions with Non-Free Zone Persons in respect of Commercial Property and transactions with any person in respect of immovable property that is not a Commercial Property;

b) Revenue attributable to a Domestic Permanent Establishment or a Foreign Permanent Establishment of the Qualifying Free Zone Person

c) Revenue derived from the ownership or exploitation of intellectual property (other than Qualifying Income from Qualifying Intellectual Property).