Qualifying Activities for UAE Free Zone Corporate Tax (Full List)

1. Qualifying activities activate the corporate tax benefits for QFZP companies.
   These include:
   • Manufacturing and processing
   • Trading of qualifying commodities
   • Holding shares for investment management
   • Fund and wealth management
   • HQ, treasury, and financing services to Related Parties
   • Logistics and distribution in/from Designated Zones
2. Common excluded activities, even if licensed, include:
   • Certain professional and service activities and certain transactions with natural persons
   • Certain real estate activities, including ownership, leasing or exploitation of immovable property located in the UAE, unless property is considered as commercial property located in a free zone
   • Regulated banking and insurance activities
   • Any activity specifically listed as included under Cabinet decision or Ministerial decisions

Being able to quantify both activities prevent free zones from being used as tax shelter for mainland businesses and ensure that the incentives only apply to substance-based activities.