Sovereign Verdict
EXCLUDED
Statutory ISIC
013
Regulatory Activity Scope
Plant propagation
"ISIC 013 is categorized under Section A (Agriculture). Under the UAE Corporate Tax regime, primary agricultural activities are not listed as Qualifying Activities. Therefore, income from plant propagation is treated as Non-Qualifying Income. If the entity is a Qualifying Free Zone Person, this income must stay within the de minimis limit (5% of total revenue or AED 5 million) to avoid disqualifying the entire entity's 0% status on other qualifying streams."
Forensic Audit Red Flag
Attempting to reclassify biological growth and propagation as 'Manufacturing of Goods' to claim the 0% Qualifying Income rate.
Statutory Authority
Article 2 and 3 of Ministerial Decision No. 229 of 2025
Nexus Requirement
Requires MOCCAE (Ministry of Climate Change and Environment) licensing and physical nursery infrastructure within a Designated Zone.
2026 Substance Compliance
- Core Income Generating Activities (CIGA)
- Local Full-Time Employment Test
- Adequate Local OPEX