Risk Level: High
The 5% Mainland Friction Trap
"Can a single 10,000 AED invoice to a Dubai Mainland client disqualify your entire Free Zone tax exemption?"
The Scenario
An ADGM-based tech consultancy earns 5 million AED annually. They issue one small invoice to a mainland LLC for 'marketing services' not covered under their QFZP scope.
Statutory Penalty
Loss of 0% status on ALL income for the current and next 4 tax years. Minimum effective tax hit: 450,000 AED.
Reference: Article 18, Clause 1(b) of Decree-Law No. 47
The Arakan Forensic Fix
Arakan’s 'Nexus-Scanner' flags non-qualifying revenue streams in real-time, preventing the 'tainting' of your Free Zone status.
- Real-time Monitoring
- Audit-Ready Logs
- Statutory Mapping