What is the implication of Excluded Activities? Provide a list of Excluded Activities

Free Zones
1

What is the implication of Excluded Activities? Provide a list of Excluded Activities.

2

Revenue from Excluded Activities is treated as non-qualifying Revenue for the purposes of the de minimis requirements, unless the Revenue is attributable to a Free Zone Person’s Foreign Permanent Establishment or Domestic Permanent Establishment or pertains to Immovable Property in a Free Zone that does not generate Qualifying Income. The following activities are Excluded Activities:

  1. Any transactions with natural persons, except transactions in relation to

  • ownership, management and operation of Ships,

  • fund management services that are subject to the regulatory oversight of the Competent Authority in the UAE,

  • wealth and investment management services that are subject to the regulatory oversight of the Competent Authority in the UAE, or

  • financing and leasing of Aircraft, including engines and rotable components.

  1. Banking Activities

  2. Insurance activities, other than

  • reinsurance services, and

  • captive insurance related activities forming part of headquarter services to Related Parties.

  1. Finance and leasing activities, other than

  • ownership, management and operation of Ships,

  • treasury and financing services to Related Parties, and

  • financing and leasing of Aircrafts, including engines and rotable components.

Excluded Activities also include ancillary activities that are integral or closely connected to each Excluded Activity as mentioned above.