Construction of other civil engineering projects

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

ISIC 4290 pertains to the construction of immovable property. Under the UAE Corporate Tax regime, income derived from immovable property is generally treated as an Excluded Activity for Qualifying Free Zone Persons, particularly when dealing with non-Free Zone Persons or residential assets. Forensic audit will focus on the 'Permanent Establishment' (PE) risk created by the duration and location of the construction site on the mainland.

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Legal Reference

Article 3, Clause 1(a) of Ministerial Decision No. 229 of 2025

Audit Red Flag

Reclassification of civil engineering works as 'technical consulting' or 'project management' to attempt to qualify for the 0% rate under Qualifying Activities.

7 licensable activities under this classification

Coastal Reclamation ContractingExternal approval required

Dredging & Reclamation ContractingExternal approval required

From AED 600 (Ajman)

Marina Construction ContractingExternal approval required

From AED 600 (Ajman)

Ports & Marine Construction ContractingExternal approval required

From AED 1,000 (Abu Dhabi)

Service Lines Coring & Ditching ContractingExternal approval required

From AED 2,500 (Abu Dhabi)

Shooting Ranges Works & MaintenanceExternal approval required

From AED 600 (Ajman)

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