Residential care activities

4 activity groups

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

ISIC 87 involves the provision of services to natural persons. Under the UAE Corporate Tax regime for Qualifying Free Zone Persons, income derived from services provided to natural persons is generally treated as an Excluded Activity. Unless the entity can prove the revenue is derived from a Qualifying Activity (e.g., specific R&D or B2B outsourcing not involving direct care), the 9% rate applies to all taxable income if the de minimis threshold is exceeded.

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Legal Reference

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

Audit Red Flag

Misclassifying B2C residential fees as B2B 'Medical Consulting' or 'Management Services' to circumvent the exclusion of services provided to natural persons.

Browse activity groups

ISIC 871

Mixed · depends on counterparty

Residential nursing care facilities

1 licensable activity

DZ required

ISIC 872

Qualifying · 0% eligible

Residential care activities for mental retardation, mental health and substance abuse

3 licensable activities

DZ required

ISIC 873

Excluded · 9% taxable

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