Telecommunications is explicitly categorized as an Excluded Activity under the Free Zone Corporate Tax regime. This ensures that income derived from regulated communication services is taxed at the standard 9% rate, preventing a competitive disadvantage for mainland operators and ensuring compliance with federal regulatory frameworks.
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Legal Reference
Ministerial Decision No. 229 of 2025, Article 3, Clause 1(i)
Audit Red Flag
Bundling telecommunications services within 'Cloud Computing' or 'SaaS' contracts to obfuscate Excluded Activity revenue and claim the 0% rate.