Sovereign Verdict
EXCLUDED
Statutory ISIC
0116
Regulatory Activity Scope
Growing of fibre crops
"Primary production activities under ISIC 01 are generally not listed as Qualifying Activities for the 0% Corporate Tax rate for Free Zone Persons. Income from the sale of raw fibre crops to mainland persons or for local consumption is treated as Non-Qualifying Income. If such income exceeds the de minimis threshold (5% of total revenue or AED 5 million), the entity risks losing its Qualifying Free Zone Person status entirely."
Forensic Audit Red Flag
Misclassification of raw agricultural output as 'processed goods' to attempt to qualify under Manufacturing/Processing categories for the 0% rate.
Statutory Authority
Ministerial Decision No. 229 of 2025, Article 4 (Non-Qualifying Activities)
Nexus Requirement
Physical land tenure within a UAE Designated Zone and a valid agricultural/industrial license.
2026 Substance Compliance
- Core Income Generating Activities (CIGA)
- Local Full-Time Employment Test
- Adequate Local OPEX