Manufacture of footwear

The manufacture of footwear involves substantial transformation of raw materials (leather, rubber, synthetics) into a finished product. Under MD 229 of 2025, 'Manufacturing of goods or materials' is a Qualifying Activity. Forensic auditors will verify the 'Substantial Transformation' test to ensure the activity is not merely 'Trading' (an Excluded Activity when dealing with non-Free Zone persons).

Audit Red Flag

Misclassification of 're-packaging' or 'labeling' as 'manufacturing' to circumvent the 0% tax rate on income derived from non-Free Zone persons.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.