Mining of coal and lignite

ISIC Code 05 pertains to the extraction of natural resources. Under Article 7 of the Corporate Tax Law, extractive activities are exempt from Federal Corporate Tax provided they are subject to Emirate-level taxation. Within the Free Zone regime, 'Extractive Activities' are explicitly listed as Excluded Activities, meaning they cannot generate Qualifying Income for the 0% rate.

Audit Red Flag

Improper allocation of shared costs between the exempt extractive business and taxable non-extractive commercial activities to artificially deflate taxable income.

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