Under the UAE Corporate Tax framework, extractive industries are governed by Article 7 and are typically subject to Emirate-level taxation. In the context of Free Zone Persons, extraction of natural resources is explicitly categorized as an Excluded Activity, meaning income derived from lignite mining cannot benefit from the 0% Qualifying Income rate, regardless of the entity's location in a Designated Zone.
“
Legal Reference
Ministerial Decision No. 229 of 2025, Article 3, Clause 1(a)
Audit Red Flag
Recharacterization of extraction revenue as 'commodity trading' or 'logistics services' to bypass the Excluded Activity classification.
Which UAE zones permit this activity?
Scout checks the current permission status for this activity across every UAE zone against your specific structure.