Extraction of natural gas

Extraction of natural gas is defined as an 'Extractive Business' under Article 1 of the Corporate Tax Law. Pursuant to Article 7, income from such activities is exempt from Federal Corporate Tax as it is subject to Emirate-level taxation. Under the Qualifying Free Zone Person regime, 'Extractive Activities' are explicitly listed as Excluded Activities to prevent the 0% regime from overriding Emirate-level fiscal sovereignty.

Audit Red Flag

Improper allocation of overhead costs between 'Extractive Business' (exempt under Article 7) and 'Non-Extractive Business' (taxable at 9%) to artificially reduce taxable income.

Which UAE zones permit this activity?

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