Sovereign Verdict
EXCLUDED
Statutory ISIC
0143
Regulatory Activity Scope
Raising of camels and camelids
"Primary agricultural production and animal husbandry are generally categorized as Excluded Activities for Free Zone Persons. Forensic scrutiny focuses on the 'Mainland Source Income' rule; if camels are sold to mainland UAE individuals or entities, the income is disqualified from the 0% regime regardless of the entity's Free Zone status. Audit will verify if the activity is purely for export or if it constitutes a 'Mainland' transaction under Article 5 of the Free Zone regulations."
Forensic Audit Red Flag
Misclassification of livestock sales as 'Distribution of Goods' to mainland entities to bypass the 9% rate on non-qualifying income.
Statutory Authority
Ministerial Decision No. 229 of 2025, Article 3, Clause 1(g)
Nexus Requirement
Physical livestock facility within a Designated Zone and local municipal agricultural permit
2026 Substance Compliance
- Core Income Generating Activities (CIGA)
- Local Full-Time Employment Test
- Adequate Local OPEX