UAE free-zone corporate tax: what MD 229 changes
Updated qualifying-activity rules can affect 0% treatment and earlier returns.
Published 3 October 2026 · By Naveed Murtaza
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What changed
Ministerial Decision 229 of 2025 updated qualifying and excluded activities and applies from 1 June 2023.
Before acting, confirm the latest effective date, eligibility test and exception in the linked official guidance; regulations and programme terms can change.
Who should review
Commodity traders, treasury operations, distributors and businesses with mixed mainland or excluded income need a fresh analysis.
Before acting, confirm the latest effective date, eligibility test and exception in the linked official guidance; regulations and programme terms can change.
Why old returns matter
A retroactive rule can change the analysis for a return already filed; a voluntary disclosure may be appropriate.
Before acting, confirm the latest effective date, eligibility test and exception in the linked official guidance; regulations and programme terms can change.
What 0% does not mean
Qualifying Free Zone Person status depends on substance, audited accounts, transfer pricing and income tests—not location alone.
Before acting, confirm the latest effective date, eligibility test and exception in the linked official guidance; regulations and programme terms can change.
What should businesses and marketers do next?
Turn the change into a dated operating checklist: identify who is affected, what evidence is required, which deadline applies and who owns the response. Then update customer communications, sales material and search content only where the change creates a genuine question.
For marketing, publish a clear source-linked answer, connect it to the relevant service or market page and monitor real query data before expanding coverage. Naveed Murtaza supports market research, SEO/AEO/GEO content and campaign planning for businesses entering or adapting within UAE.
Important information note
This article provides general business information, not legal, tax, immigration or investment advice. Rules can change after publication; confirm your facts with the linked authority and a qualified adviser for your circumstances.