Extraction of crude petroleum

Extraction of natural resources is explicitly defined as an Excluded Activity for Qualifying Free Zone Persons. Such income is typically subject to Emirate-level taxation (Sovereign Tax) rather than the Federal Corporate Tax regime. Forensic scrutiny focuses on the separation of 'Extractive Business' income from 'Non-Extractive' income within the same legal entity to prevent unauthorized tax base erosion.

Audit Red Flag

Attempting to claim the 0% Free Zone rate on 'ancillary' extraction services by mischaracterizing them as 'Distribution' or 'Headquarter' services.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.