Sovereign Verdict
EXCLUDED
Statutory ISIC
02
Regulatory Activity Scope
Forestry and logging
"Forestry and logging (ISIC 02) constitute primary production and extraction of natural resources. Under Article 7 of the Corporate Tax Law, income from natural resources is generally exempt from Federal CT as it is subject to Emirate-level taxation. Furthermore, this activity is not listed as a 'Qualifying Activity' under the Free Zone regime (MD 139 of 2023 / MD 229 of 2025), meaning any income derived by a Free Zone Person from this activity is treated as 'Excluded Income' taxable at 9%."
Forensic Audit Red Flag
Attempting to reclassify logging activities as 'Processing of Goods' under Qualifying Activities to illicitly access the 0% Free Zone rate.
Statutory Authority
Article 7 (Exemption for Natural Resources) and Ministerial Decision No. 229 of 2025
Nexus Requirement
Emirate-level concession or Mainland commercial license
2026 Substance Compliance
- Core Income Generating Activities (CIGA)
- Local Full-Time Employment Test
- Adequate Local OPEX