The UAE has issued new corporate tax regulations to broaden the scope of qualifying activities for free zone companies.
Under the updated rules, the scope of commodity trading has been expanded to include metals, minerals, industrial chemicals, energy and agricultural commodities, as well as related by-products and environmental commodities. The previous requirement that commodities must be traded “in raw form” has been removed.
A qualifying commodity must have a quoted price listed by a recognised exchange or an authorised price reporting agency. The Ministry of Finance also issued a decision specifying these agencies to ensure greater clarity and consistency for businesses.
The government emphasized that free zones remain central to the UAE’s strategy of attracting investment and driving economic diversification. The updates are designed to support compliance with international tax standards while maintaining a competitive business environment.
Free zone companies engaged in qualifying activities can continue to benefit from the zero per cent corporate tax rate, provided they meet the set conditions.
