Specialized construction activities

Under the UAE Corporate Tax regime for Free Zone Persons, specialized construction activities (ISIC 43) are generally treated as Excluded Activities when they involve immovable property. Forensic scrutiny focuses on the 'Mainland' nexus; if the construction site is outside a Designated Zone, the income is taxed at 9% regardless of the entity's Free Zone status.

Audit Red Flag

Mischaracterizing site-based installation services as 'Consultancy' or 'Head Office Services' to bypass the Excluded Activity classification.

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