Extraction of natural gas

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Extraction of natural gas is defined as an 'Extractive Business' under Article 1 of the Corporate Tax Law. Pursuant to Article 7, income from such activities is exempt from Federal Corporate Tax as it is subject to Emirate-level taxation. Under the Qualifying Free Zone Person regime, 'Extractive Activities' are explicitly listed as Excluded Activities to prevent the 0% regime from overriding Emirate-level fiscal sovereignty.

“

Legal Reference

Article 7 of Federal Decree-Law No. 47 of 2022; Ministerial Decision No. 265 of 2023

Audit Red Flag

Improper allocation of overhead costs between 'Extractive Business' (exempt under Article 7) and 'Non-Extractive Business' (taxable at 9%) to artificially reduce taxable income.

Want expert help licensing this activity?

Leave your details and a licensing adviser will call you back about where this activity can be licensed, the approvals it needs and what it costs. There's no charge to ask.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.

Get your ranked shortlist