emirates7 - The UAE Ministry of Finance (MoF) has announced the repeal of Ministerial Decision (MD) No. 265 of 2023, replacing it with Ministerial Decision No. 229 of 2025, which defines Qualifying Activities and Excluded Activities for Corporate Tax purposes in Free Zones.
The new decision broadens the definition of Qualifying Commodity Trading to cover industrial chemicals, associated by-products of Qualifying Commodities, and environmental commodities. It also provides further guidance on Treasury and financing services involving Related Parties.
Additionally, the MoF issued Ministerial Decision No. 230 of 2025, specifying Recognised Price Reporting Agencies in relation to Ministerial Decision No. 229 of 2025.
The Ministry highlighted the strategic importance of Free Zones in driving economic growth, attracting investment, and fostering a business-friendly environment. These updates underline the UAE’s commitment to supporting Free Zones, promoting economic diversification, and maintaining alignment with international tax standards.
Ministerial Decision No. 229 of 2025 removes the previous restriction of trading Qualifying Commodities “in raw form,” now allowing trading of metals, minerals, industrial chemicals, energy and agricultural commodities, and their associated by-products, provided a Quoted Price exists. A Quoted Price is defined as a price for a Qualifying Commodity or related commodity established by a Recognised Commodity Exchange or a Recognised Price Reporting Agency listed under the Minister’s decision.
Ministerial Decision No. 230 of 2025 provides a list of these recognised pricing agencies, offering clarity and certainty for taxpayers.
Other key updates include permitting self-investment under Treasury and financing services for Related Parties or the taxpayer’s own account, and confirming that distributing goods or materials within or from a Designated Zone to public benefit entities does not affect the de-minimis threshold.
The UAE’s attractive Corporate Tax framework, combined with preferential treatment for Qualifying Activities, strengthens the country’s position as a global business hub and supports its sustainable development objectives.
The new decision broadens the definition of Qualifying Commodity Trading to cover industrial chemicals, associated by-products of Qualifying Commodities, and environmental commodities. It also provides further guidance on Treasury and financing services involving Related Parties.
Additionally, the MoF issued Ministerial Decision No. 230 of 2025, specifying Recognised Price Reporting Agencies in relation to Ministerial Decision No. 229 of 2025.
The Ministry highlighted the strategic importance of Free Zones in driving economic growth, attracting investment, and fostering a business-friendly environment. These updates underline the UAE’s commitment to supporting Free Zones, promoting economic diversification, and maintaining alignment with international tax standards.
Ministerial Decision No. 229 of 2025 removes the previous restriction of trading Qualifying Commodities “in raw form,” now allowing trading of metals, minerals, industrial chemicals, energy and agricultural commodities, and their associated by-products, provided a Quoted Price exists. A Quoted Price is defined as a price for a Qualifying Commodity or related commodity established by a Recognised Commodity Exchange or a Recognised Price Reporting Agency listed under the Minister’s decision.
Ministerial Decision No. 230 of 2025 provides a list of these recognised pricing agencies, offering clarity and certainty for taxpayers.
Other key updates include permitting self-investment under Treasury and financing services for Related Parties or the taxpayer’s own account, and confirming that distributing goods or materials within or from a Designated Zone to public benefit entities does not affect the de-minimis threshold.
The UAE’s attractive Corporate Tax framework, combined with preferential treatment for Qualifying Activities, strengthens the country’s position as a global business hub and supports its sustainable development objectives.