Manufacture of fabricated metal products, except machinery and equipment

ISIC 25 involves the transformation of metal into distinct products. Forensic scrutiny focuses on the 'Substantial Transformation' test. If the process does not result in a change in the HS Code (Harmonized System) at the 4-digit level, the FTA may re-characterize the income as 'Distribution of Goods' which is an Excluded Activity unless conducted with a Qualifying Person.

Audit Red Flag

Misclassification of 'simple assembly' or 're-packaging' of imported metal components as 'Manufacturing' to evade the 9% tax on non-qualifying trading income.

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