Qualifying Activities

 Manufacturing of goods or materials  Processing of goods or materials  Trading of Qualifying Commodities  Ownership, management and operation of Ships  Treasury and financing services to Related Parties.  Wealth and investment management services (regulated by the UAE)  Holding of shares and other securities for investment purposes  Reinsurance services (regulated by the UAE)  Logistics services  Fund management services (regulated by the UAE)  Headquarter services to Related Parties  Financing and leasing of Aircraft, including engines and rotable components.  The transfer of goods (Distribution) or materials within or from a Designated Zone (DZ) – as outlined in the current VAT regulations, which include 27 DZs – to a customer who either resells these items, modifies them, or processes them for the purpose of selling or reselling. Additional conditions apply. • The distribution of goods and materials should take place within or from the designated zone • The distribution of goods and materials should take place within or from the designated zone.  Any activities that support or are related to those mentioned in above.

Excluded Activities

 Any transactions with natural persons, except transactions in relation to the following Qualifying Activities: • Ownership, management, and operation of ships; • Management services for prescribed funds; • Wealth and investment management services that are prescribed; and • Financing and leasing of aircraft, including engines and rotatable components.  Banking activities (regulated by the UAE)  Insurance operations in the UAE, excluding reinsurance services and headquarters services provided to affiliated entities as outlined in the 'qualifying activities.'  Finance and leasing activities (regulated by the UAE), other than ownership, management and operations of ships, treasury and financing services and financing and leasing of aircraft as specified under the ‘qualifying activities’  The ownership or use of immovable property, excluding commercial properties situated in a Free Zone, where transactions involving such commercial properties are carried out with other Free Zone Participants.  Any activities that support or are related to the activities mentioned above. According to CD 100 of 2023, any income generated from owning or utilizing qualifying intellectual property will be classified as qualifying income. On the other hand, income from non-qualifying intellectual property, as well as any income exceeding the amount determined by article 4 of MD 265 of 2023, will be subject to a corporate tax rate of 9%.