UAE Clarifies New Corporate Tax Rules for Free Zones: A Comprehensive Guide for Businesses
The United Arab Emirates has made significant strides in clarifying its corporate tax framework for free zone businesses, providing much-needed guidance that will impact thousands of companies operating in the UAE’s numerous free zones. In September 2025, the Ministry of Finance issued two crucial ministerial decisions that expand qualifying activities and provide clearer guidance on pricing methodologies, marking a pivotal moment for free zone businesses navigating the UAE’s evolving tax landscape. Major Policy Updates: What’s Changed? The UAE Ministry of Finance has introduced substantial changes through two key ministerial decisions that replace previous regulations and provide expanded clarity for free zone operations. Ministerial Decision No. 229 of 2025: Qualifying and Excluded Activities The Ministry of Finance (MoF) announced the repeal of Ministerial Decision No. 265 of 2023, replacing it with Ministerial Decision No. 229 of 2025 on Qualifying Activities and Excluded Act...