Extraction of crude petroleum and natural gas

Under the UAE CT framework, extraction of natural resources is governed by Article 7 (Extractive Business). It is categorized as an 'Excluded Activity' for Qualifying Free Zone Persons to prevent the 0% regime from overriding Emirate-level fiscal regimes. Forensic auditors will verify if the entity meets the conditions of Article 7 to maintain exemption, otherwise, it defaults to the 9% standard rate.

Audit Red Flag

Commingling of exempt extractive revenue with taxable non-extractive ancillary service fees without distinct segmental reporting.

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