Sovereign Verdict
EXCLUDED
Statutory ISIC
01
Regulatory Activity Scope
Crop and animal production, hunting and related service activities
"ISIC 01 involves the biological transformation of natural resources. It is not listed as a Qualifying Activity under the executive decisions governing Free Zone Persons. Consequently, income from primary production is treated as Non-Qualifying Income, which may jeopardize a Free Zone Person's status if it exceeds the de minimis threshold of 5% of total revenue or AED 5,000,000."
Forensic Audit Red Flag
Recharacterization of primary agricultural output as 'manufactured goods' to exploit the 0% Qualifying Income rate
Statutory Authority
Ministerial Decision No. 229 of 2023, Article 3
Nexus Requirement
Physical land tenure in UAE and MOCCAE operational licensing
2026 Substance Compliance
- Core Income Generating Activities (CIGA)
- Local Full-Time Employment Test
- Adequate Local OPEX