Forestry and logging

Forestry and logging (ISIC 02) constitute primary production and extraction of natural resources. Under Article 7 of the Corporate Tax Law, income from natural resources is generally exempt from Federal CT as it is subject to Emirate-level taxation. Furthermore, this activity is not listed as a 'Qualifying Activity' under the Free Zone regime (MD 139 of 2023 / MD 229 of 2025), meaning any income derived by a Free Zone Person from this activity is treated as 'Excluded Income' taxable at 9%.

Audit Red Flag

Attempting to reclassify logging activities as 'Processing of Goods' under Qualifying Activities to illicitly access the 0% Free Zone rate.

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