KEZAD company accounting for Abu Dhabi industrial and logistics firms (formerly KIZAD)

KEZAD offers both options, depending on a company's strategy. Only a free zone person can be a qualifying free zone person, so a company in a domestic economic zone follows the regular corporate tax rules: 0% on taxable income up to AED 375,000 and 9% above. A group that has one company of each type should keep them as separate entities, which the HelloBooks Business plan supports with consolidated reporting.

Take a KEZAD free zone company making aluminium extrusions, with AED 85 million of revenue from its own products sold to fabricators in the UAE and the GCC. Manufacturing is a qualifying activity in the FTA guide, with conditions in Ministerial Decision No. 265 of 2023. Its de minimis cap is AED 4.25 million, which is 5% of revenue and lower than AED 5 million.

Now add AED 3 million of income from reselling imported profiles bought ready-made, and AED 1.5 million from leasing part of its plot to a neighbour. If both are non-qualifying, the AED 4.5 million total exceeds the cap and the company loses qualifying status for that year and the next four. The FTA guide treats property income separately and limits when it can be qualifying, so the lease deserves particular attention.

• Separate income accounts for manufactured goods, resale and rent
• Stock split into raw materials, work in progress and finished goods
• Fixed asset register with monthly depreciation for plant

Bills for billets, energy, dies, maintenance and freight arrive in volume. The agent reads each one, including Arabic invoices from local suppliers, codes it to the right cost account and production line, and holds capital items or anything over your approval limit for a manager. Bank statements are uploaded and matched, since UAE banks have no live feed into HelloBooks.

The finance manager can ask "what share of revenue this year came from resale rather than our own production?" and get the number with its invoices. Audited financial statements are a condition for qualifying status, so every entry keeps its source document. For an industrial chart of accounts or cost-centre reports, book a call at /book-a-demo or email hello@hellobooks.ai.