Tax Public Clarification TAXP010 from the FTA explains what constitutes a Free Zone and a Designated Zone for Corporate Tax purposes. A Corporate Tax Free Zone is a geographic area specified in a Cabinet decision at the suggestion of the Minister, while a Corporate Tax Designated Zone must be both a VAT Designated Zone and a Free Zone for Corporate Tax purposes. Qualifying Free Zone Persons may benefit from the 0% Corporate Tax rate on Qualifying Income, yet distribution of goods or materials qualifies only when carried out in or from a Corporate Tax Designated Zone. Taxpayers should confirm status with the Free Zone authority.