Operation of sports facilities

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Under MD 229 of 2025, the operation of sports facilities is categorized as a service-based activity. Since it typically involves transactions with natural persons (end-consumers), it falls under Excluded Activities. If the income from these transactions exceeds the de minimis threshold (5% of total revenue or AED 5M), the entity loses its Qualifying Free Zone Person status for the period.

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Legal Reference

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

Audit Red Flag

Revenue leakage from 'Natural Persons' (B2C) memberships being misclassified as B2B corporate services to bypass Excluded Activity thresholds.

8 licensable activities under this classification

Billiard & Pool RoomNo external approval required

Educational Institutions’ Sport Facilities LeasingNo external approval required

Rallies & Sport Tournaments Organizing ServicesNo external approval required

Recreational Course OperatorNo external approval required

Skating RinkNo external approval required

Sport Clubs & Facilities ManagementNo external approval required

Sports & Amusement TracksNo external approval required

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