Sovereign Verdict
EXCLUDED
Statutory ISIC
021
Regulatory Activity Scope
Silviculture and other forestry activities
"Silviculture is classified as primary production. Under Ministerial Decision No. 229 of 2025, the extraction and management of natural resources and land-based primary activities are specifically excluded from 'Qualifying Activities'. Income derived from the exploitation of UAE land (immovable property) is subject to the 9% Corporate Tax rate, even if conducted by a Free Zone Person."
Forensic Audit Red Flag
Attempting to classify timber growth and forest management as 'Manufacturing' or 'Processing of Goods' to qualify for the 0% rate.
Statutory Authority
Article 3, Clause 1(g) of Ministerial Decision No. 229 of 2025
Nexus Requirement
Immovable property nexus within a Designated Zone
2026 Substance Compliance
- Core Income Generating Activities (CIGA)
- Local Full-Time Employment Test
- Adequate Local OPEX