Manufacture of plastics products

Under ISIC 222, the activity qualifies as 'Manufacturing of goods or materials'. Forensic verification focuses on the nexus between utility consumption (power/water), capital expenditure on machinery, and the headcount of technical staff registered under the Free Zone license versus actual output volume.

Audit Red Flag

Re-characterization of 'Contract Manufacturing' performed by a mainland affiliate as the Free Zone entity's own production to illicitly claim 0% tax rate.

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