Key UAE Tax Regulatory Updates (2025)

The UAE Ministry of Finance has updated the rules for Free Zone businesses with Ministerial Decision No. 229 (Qualifying and Excluded Activities) and Ministerial Decision No. 230 (Recognized Price Reporting Agencies). These changes replace the 2023 framework and bring new considerations for corporate tax treatment in Free Zones.

The main updates are:

• Expanded Qualifying Activities – Trading now covers industrial chemicals, environmental commodities, and associated by-products, provided a recognized market price exists.
  
• Treasury & Financing Services – Self-investment, whether for related parties or on your own account, is now included as a qualifying activity.
  
• Distribution Flexibility – Companies in Designated Zones may supply public benefit entities without breaching the de-minimis threshold.
  
• Recognized Price Reporting Agencies – A new official list provides greater clarity for commodity trading businesses.
  

How This Affects You
While these updates create new opportunities, they also make the setup and compliance process more complex. Many entrepreneurs are unsure how to interpret the rules, structure their company, or ensure their chosen activities qualify for Free Zone benefits.

Our Role
At TAG Consultancy, we will support you throughout your entire set-up journey. From choosing the right Free Zone and legal structure to managing licensing, visas, and banking, our team helps you navigate these new regulations effectively and supportively. Our goal is to give you clarity, reduce stress, and ensure your business is established on the strongest possible foundation.

Find out more about our Company Set-Up Services or book a 30-minute free consultation.