Compulsory social security activities

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Under Ministerial Decision No. 229 of 2025, compulsory social security is categorized as a sovereign function. While Government Entities are 'Exempt Persons' under Article 4, any private sector participation or outsourced administration of these funds is treated as an 'Excluded Activity' for Qualifying Free Zone Person status to prevent the erosion of the tax base through public-service outsourcing.

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Legal Reference

Article 4(1)(a) of Federal Decree-Law No. 47 of 2022; MD 229 of 2025 Clause 5

Audit Red Flag

Misclassification of private pension fund management or commercial insurance brokerage as 'compulsory social security' to claim sovereign exemption.

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