The Ministry of Finance issues two decisions regarding qualified and excluded activities in the free zones for corporate tax purposes
Abu Dhabi, September 3 / WAM / The Ministry of Finance announced the cancellation of Ministerial Resolution No. 265 of 2023 to be replaced by a new ministerial decision No. 229 of 2025 regarding qualified activities and excluded activities that shows the scope of qualified activities for corporate tax purposes in the free zones, where the updates included expanding the scope of trading of qualified goods to include industrial chemicals and secondary products related With qualified goods and environmental commodities, and providing clarifications on treasury services and financing to associated parties.
The Ministry also issued Ministerial Resolution No. 230 of 2025 regarding the determination of the approved authorities to prepare price reports for the purposes of Ministerial Resolution No. 229 of 2025 regarding qualified activities and excluded activities.
The Ministry emphasized the pivotal role of free zones in advancing economic growth in the country, and attracting investments as well as providing a stimulating business environment, explaining that these new decisions reflect the importance of free zones and their role in the strategy of diversifying the economic activities of the state and its commitment to providing a supportive environment for business, by align with international tax standards.
In detail, Ministerial Resolution No. 229 of 2025 clarifies the qualified activities and activities that are excluded, the scope of trading of qualified goods, where the phrase “goods in their raw form” were deleted, allowing the circulation of metals, minerals, industrial chemicals, energy commodities, agricultural commodities and associated secondary products, provided that the “declared price” is available for those commodities mentioned.
The “declared price” means the price of the qualified commodity or the relevant commodity, which is determined by an approved market for the trading of goods or an approved pricing entity that is determined by a decision issued by the minister.
In the same context, Ministerial Resolution No. 230 for the year 2025 regarding the determination of the approved authorities to prepare price reports, which can be used as a reference source for commodity prices, is determined, providing clarity and more certainty of the prices of these commodities for taxpayers.
These updates include several other advantages that include the possibility of practicing investment activity for the private account by taxpayers who are qualified for treasury services and financing for linked parties, in addition to clarifying that the process of distributing goods and materials in or from a specific area can include transactions with public benefit entities without affecting the minimum requirements of revenues achieved by the qualified person in the free zone.
It should be noted that the competitive system of corporate tax, associated with unprecedented preferential tax rates for qualified activities, enhances the UAE’s position as a leading global center for business and investment and supports the achievement of its agenda for sustainable development.
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