With the issuance of Ministerial Decision (‘MD’) No. 229 of 28 August 2025, the concept of “Quoted Price” has become a cornerstone in determining whether a commodity being traded qualifies as a “Qualifying Commodity”, and consequently, whether the activity constitutes a “Qualifying Activity”. Given its pivotal role in defining eligibility for the 0% Corporate Tax rate, it is essential to understand both the precise meaning of the “Quoted Price” term and how it operates within the broader framework of Qualifying Commodities. This article aims to provide that clarity.
Relevant definitions & list
Article 1 of MD No. 229/ 2025 defines:
- Qualifying Commodities as: ‘the following commodities provided a Quoted Price for such commodities exists:
- Metals, minerals, industrial chemicals, energy and agriculture commodities and Associated By-products, excluding products packaged for retail sale and any other products specified in a decision issued by the Minister.
- Environmental commodities, being tradeable assets that represent a specific environmental benefit, such as carbon credits or renewable energy certificates.’
- Quoted Price as: ‘Price of the Qualifying Commodity or a Related Commodity specified by a Recognised Commodity Exchange Market or a recognised price reporting agency specified by a decision issued by the Minister.’
- Related Commodity as: ‘Any commodity that is listed in the same chapter in the Common Schedule for Classification and Coding of Goods as a Qualifying Commodity that has a Quoted Price.’
- Common Schedule for Classification and Coding of Goods as: ‘the Common Schedule for the Classification and Coding of Goods for the Gulf Cooperation Council Countries adopted pursuant to Cabinet Decision No. 119 of 2024 referred to above or any legislation that amends or replaces it.’
- Recognised Commodities Exchange Market as: ‘Any commodities exchange market established in the State that is licensed and regulated by the relevant Competent Authority, or any commodities exchange market established and recognised outside the State that are licensed and regulated by the relevant foreign authority in the jurisdiction of establishment, or any commodities exchange market as specified in a decision issued by the Minister.’
The list attached to MD 230 specifies the Recognised Price Reporting Agencies for the purposes of MD 229.
Analysis
As can be seen above, a commodity can qualify as a Qualifying Commodity, only if it has a Quoted Price. Quoted Price is defined as a Price specified by a Recognised Commodity Exchange Market or a Recognised Price Reporting Agency, for the Qualifying Commodity or a Related Commodity.
Related Commodity definition
Article 1 of MD 229 defines Related Commodities as “any commodity that is listed in the same chapter in the Common Schedule for Classification and Coding of Goods as a Qualifying Commodity that has a Quoted Price”.
The structure of this definition allows for two possible interpretations:
- “…that has a Quoted Price” qualifies “any Commodity”, i.e. it functions as a restrictive clause referring to “any commodity”.
Under this reading, the phrase “that has a Quoted Price” attaches to the opening words “any commodity”. Accordingly, a commodity would be regarded as a Related Commodity if:
- it is listed in the same HSN Chapter as the Qualifying Commodity, for which the Quoted Price is to be determined, and
- it itself has a Quoted Price.
For instance, if RMG 380 Fuel Oil or Brent Crude Oil, both falling under Chapter 27, have a Quoted Price, they would constitute the Related Commodities, while other energy products within the same chapter, such as Gas Oil or Kerosene, would not qualify as Related Commodities unless they too are individually priced.
- “… that has a Quoted Price” qualifies “Qualifying Commodity”, meaning the phrase modifies “Qualifying Commodity” rather than “any commodity”.
A literal, grammatical reading suggests that the qualifier “that has a Quoted Price” modifies the immediately preceding term “Qualifying Commodity”. Under this interpretation, the presence of a Quoted Price is an attribute of the Qualifying Commodity itself, not of all commodities listed in the same HSN Chapter.
Under this interpretation, once Brent Crude Oil or RMG 380 Fuel Oil is treated as a Qualifying Commodity by virtue of having a Quoted Price, other energy products within Chapter 27 (such as Gas Oil or Kerosene) may be treated as Related Commodities even if they do not themselves have a Quoted Price. This is because they are related to a priced Qualifying Commodity within the same chapter.
Second interpretation is supported by the absence of a comma between the two phrases and the use of the word “that” instead of “and”, indicating that the qualifier directly attaches to “Qualifying Commodity.”
However, the second interpretation leads to a circular and self-referential outcome. Under this reading, the Related Commodity would be required to be listed in the same Chapter as a “Qualifying Commodity that has a Quoted Price.” Yet, under the definition of Qualifying Commodity, a commodity can only be regarded as qualifying where a Quoted Price already exists. At the same time, the definition of Quoted Price refers back to the Related Commodity precisely to determine the Quoted Price of a commodity that does not itself have one.
In effect, each definition depends on the other for its own meaning. The Related Commodity can only be identified by reference to a Qualifying Commodity, which in turn can only exist if a Quoted Price is already known. This creates a vicious definitional loop, with no independent starting point for identifying which commodity first possesses the Quoted Price.
In light of the above, the first interpretation can be seen as offering a more coherent and functional reading. If the phrase “that has a Quoted Price” is understood to qualify “any commodity”, the provision becomes operational: any commodity that itself has a Quoted Price and is listed in the same HS Chapter as the commodity whose price is being determined would be treated as a Related Commodity.
Although this construction is linguistically less conventional, it avoids circularity and aligns with the logical sequencing of the definitions.
Application of the definitions
Based on the preferred interpretation of the definition of Related Commodity, read in conjunction with the definitions of Quoted Price and Qualifying Commodity, if even one commodity within a customs chapter (i.e. the first two digits of the HSN code) is recognised as having a Quoted Price, all other commodities classified under that same chapter could be treated as possessing a Quoted Price by association. Consequently, such commodities could themselves qualify as Qualifying Commodities, provided they fall within one of the specific categories enumerated in the statutory definition (e.g. metals, minerals, industrial chemicals, energy, agricultural, or environmental commodities).
In terms of the above example involving Chapter 27, this construction would mean that once a commodity such as Brent Crude Oil or RMG 380 Fuel Oil is recognised as having a Quoted Price, other products within the same chapter (such as Gas Oil or Kerosene) could likewise be treated as Qualifying Commodities by association. Their eligibility would thus derive not from possessing an individual Quoted Price, but from their classification within the same customs chapter as a commodity for which a recognised Quoted Price exists.
The literal wording of Article 1 supports this outcome, as it defines the phrase Related Commodity by reference to chapter-level classification, without requiring any functional or commercial similarity.
Conclusion
In view of the above, Article 1 of MD No. 229 appears to reflect a deliberately broad legislative approach to determining when a commodity may be regarded as having a Quoted Price. By linking commodities at the chapter level of the customs classification, the provision allows the existence of a quoted price for one product to extend to other commodities within the same chapter.
This further ensures that the Qualifying Commodity concept is interpreted expansively, encompassing a wide range of traded goods. Accordingly, the Quoted Price framework under UAE Corporate Tax law widens the scope of Qualifying Commodities.
The disclaimer
Pursuant to the MoF’s press-release issued on 19 May 2023 “a number of posts circulating on social media and other platforms that are issued by private parties, contain inaccurate and unreliable interpretations and analyses of Corporate Tax”.
The Ministry issued a reminder that official sources of information on Federal Taxes in the UAE are the MoF and FTA only. Therefore, analyses that are not based on official publications by the MoF and FTA, or have not been commissioned by them, are unreliable and may contain misleading interpretations of the law. See the full press release here.
You should factor this in when dealing with this article as well. It is not commissioned by the MoF or FTA. The interpretation, conclusions, proposals, surmises, guesswork, etc., it comprises have the status of the author’s opinion only. Furthermore, it is not legal or tax advice. Like any human job, it may contain inaccuracies and mistakes that we have tried my best to avoid. If you find any inaccuracies or errors, please let us know so that we can make corrections.
