7 July 2026 · Activities
Qualifying vs Excluded Activities
Whether income gets 0% often comes down to the activity behind it. Qualifying activities include manufacturing and processing, trading of qualifying commodities, holding of shares and securities, ship operation, fund and wealth management, and certain HQ and treasury services. Excluded activities — such as most banking, insurance, income from immovable property (other than commercial property to free zone persons), and transactions with natural persons — do not qualify even inside a free zone.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Activities that keep 0%
These are the activities the rules treat as genuinely free-zone in nature.
- Manufacturing, processing and assembly of goods.
- Trading of qualifying commodities and distribution from a designated zone.
- Holding of shares and other securities.
- Fund, wealth and investment management; HQ and treasury services.
Activities taxed at 9%
Some activities are carved out no matter how much substance you have.
- Most banking and insurance activities.
- Income from immovable property (with limited commercial-property exceptions).
- Transactions with natural persons (subject to exceptions).
- Certain intellectual-property income outside the qualifying regime.
Related guides
Frequently Asked Questions
For free zone companies checking their activity mix.
Is trading a qualifying activity?
Trading of qualifying commodities and distribution from a designated zone can qualify; general mainland retail to individuals typically does not.
Does selling to individuals qualify?
Transactions with natural persons are generally excluded, subject to specific exceptions in the rules.
Is property income ever 0%?
Only limited commercial-property income from other free zone persons within a free zone; most immovable-property income is excluded.
Can Exiloz confirm our activities qualify?
Yes. We map your activities to the qualifying and excluded lists and quantify what is at 0% versus 9%.
Check your activity mix
Exiloz maps your activities to the qualifying and excluded lists so you know your real rate.