Plant propagation

ISIC 013 is categorized under Section A (Agriculture). Under the UAE Corporate Tax regime, primary agricultural activities are not listed as Qualifying Activities. Therefore, income from plant propagation is treated as Non-Qualifying Income. If the entity is a Qualifying Free Zone Person, this income must stay within the de minimis limit (5% of total revenue or AED 5 million) to avoid disqualifying the entire entity's 0% status on other qualifying streams.

Audit Red Flag

Attempting to reclassify biological growth and propagation as 'Manufacturing of Goods' to claim the 0% Qualifying Income rate.

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