Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials

ISIC 16 involves the physical transformation of raw timber or cork into distinct new products. Under the UAE CT framework, 'Manufacturing' is a Qualifying Activity. Forensic auditors will verify the 'Substantial Transformation' test; if the process is deemed superficial (e.g., mere cutting or sorting), the income may be re-characterized as 'Distribution', which requires a Designated Zone nexus to maintain 0% status.

Audit Red Flag

Misclassification of 'simple assembly' or 'repackaging' as 'Manufacturing' to avoid the stricter Designated Zone (DZ) requirements applicable to 'Distribution of Goods'.

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