Under Ministerial Decision No. 229 of 2025, Higher Education is classified as a Qualifying Activity. Forensic scrutiny focuses on the 'Core Income Generating Activities' (CIGA), specifically ensuring that curriculum design and teaching are performed within the Free Zone. Income derived from 'Excluded Activities' such as retail or commercial R&D must be segregated to prevent the breach of de minimis thresholds which would disqualify the entire Free Zone Person's 0% status.
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Legal Reference
Ministerial Decision No. 229 of 2025, Article 3, Clause 1(f)
Audit Red Flag
Bundling of commercial research, corporate consultancy, or student accommodation fees with tuition to bypass the 9% tax on non-qualifying revenue streams.