Two new ministerial decisions that clarify the treatment of Free Zone enterprises under the UAE’s corporate tax policy have been announced by the Ministry of Finance. The declarations, which were issued on Wednesday, demonstrate the government’s ongoing dedication to establishing the United Arab Emirates as one of the world’s most transparent and competitive business centers.
An previous order from 2023 has been replaced by the first update, Ministerial Decision No. (229) of 2025, which provides more precise information on which operations within Free Zones are eligible for preferential corporation tax treatment.
Regarding eligible commodities, the second, Ministerial Decision No. (230) of 2025, lists the approved Price Reporting Agencies that businesses may trust. When taken as a whole, these policies aim to help Free Zone companies feel more secure, align their operations with international standards, and enhance the UAE’s position as a desirable location for global investment and trade.
‘Qualifying Commodity Trading’ is defined more broadly in the update. Up until recently, companies operating in the Free Zone were only eligible for the special zero percent corporation tax rate on commodity trade provided the commodities were in their raw state. This restriction is lifted by the recent ruling, making it possible to incorporate a far greater variety of goods.
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