Growing of fibre crops

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Primary production activities under ISIC 01 are generally not listed as Qualifying Activities for the 0% Corporate Tax rate for Free Zone Persons. Income from the sale of raw fibre crops to mainland persons or for local consumption is treated as Non-Qualifying Income. If such income exceeds the de minimis threshold (5% of total revenue or AED 5 million), the entity risks losing its Qualifying Free Zone Person status entirely.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 4 (Non-Qualifying Activities)

Audit Red Flag

Misclassification of raw agricultural output as 'processed goods' to attempt to qualify under Manufacturing/Processing categories for the 0% rate.

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