Who is considered a qualifying free zone person and what will happen if he earns non-qualifying income?

A qualifying free zone person is a business entity that maintains sufficient substance, generates Cabinet-specified income, adheres to transfer pricing rules, and maintains the relevant documents. If the Free Zone person earns non-qualifying income, they will be subject to 9% tax. However, if the total non qualifying income is not more than 5% of their total revenue or if it is not more than AED 5 million, then they will be exempted. However, the revenue from a foreign permanent establishment within a Free Zone will be taxed a full 9%.