Manufacture of products of wood, cork, straw and plaiting materials

Manufacturing is a Qualifying Activity. Forensic focus is on the 'substantial transformation' test to ensure the process is not merely packaging or minor assembly. Income from sales to UAE Mainland must be segregated as it may be subject to the 9% rate depending on the distribution model used (e.g., via a Mainland distributor vs. direct sale).

Audit Red Flag

Re-characterization of 'Trading' (Excluded Activity) as 'Manufacturing' (Qualifying Activity) where no substantial transformation of wood/cork raw materials occurs within the Free Zone.

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