Construction of utility projects

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

ISIC 4220 involves the development of immovable property. Under the UAE CT framework, income from immovable property (specifically construction and development) is generally excluded from the 0% Qualifying Income regime for Free Zone Persons when the property is located outside the Free Zone or involves non-Free Zone persons. Forensic focus is on the 'Site Office' constituting a Fixed Place of Business PE.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 5 (Exclusions related to Immovable Property)

Audit Red Flag

Reclassification of 'Construction Services' as 'Technical Consulting' or 'Project Management' to bypass the immovable property exclusion list.

10 licensable activities under this classification

Communication Lines ContractingExternal approval required

Desalination Plants ContractingExternal approval required

From AED 1,000 (Abu Dhabi)

District Cooling Plants ContractingExternal approval required

From AED 1,000 (Abu Dhabi)

Electric Power Lines ContractingExternal approval required

From AED 1,000 (Abu Dhabi)

Oil & Gas Civil Structural Works Contracting External approval required

From AED 2,000 (Abu Dhabi)

Power Stations Contracting & RepairingExternal approval required

From AED 1,000 (Abu Dhabi)

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