Extraction of natural resources is explicitly categorized as an Excluded Activity for Qualifying Free Zone Persons. While the entity may be exempt from Federal Corporate Tax under Article 7 (Extractive Business), this is contingent upon being subject to Emirate-level taxation. If the entity operates within a Free Zone and seeks the 0% rate, this activity fails the 'Qualifying Activity' test, defaulting the income to the 9% rate unless the Article 7 sovereign exemption is strictly proven.
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Legal Reference
Article 7 of Federal Decree-Law No. 47 of 2022 and Ministerial Decision No. 229 of 2025
Audit Red Flag
Attempting to recharacterize 'Extraction' as 'Manufacturing' or 'Wholesale of Peat' to claim Qualifying Income status under the Free Zone regime.
Which UAE zones permit this activity?
Scout checks the current permission status for this activity across every UAE zone against your specific structure.