Two recent ministerial orders released by the UAE Ministry of Finance shed further light on how Free Zone businesses would be handled under the nation’s corporate tax system. The government’s ongoing efforts to establish the United Arab Emirates as one of the world’s most transparent and competitive business centers are demonstrated by the statements made on Wednesday.
The first update, Ministerial Decision No. (229) of 2025, clarifies which operations within Free Zones are eligible for favorable corporation tax treatment and supersedes a previous judgment from 2023.
Ministerial Decision No. (230) of 2025, the second, lists the approved Price Reporting Agencies that businesses can use for qualifying commodities. All of these actions are intended to provide certainty for Free Zone companies, harmonize procedures with international norms, and strengthen the UAE’s position as a desirable location for global investment and trade.
The expanded definition of ‘Qualifying Commodity Trading’ is central to the upgrade. The unique zero per cent corporate tax rate on commodity trading was previously only available to Free Zone businesses if the commodities were traded in raw form. The new ruling eliminates that restriction, making it possible to incorporate a far greater variety of items.
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