Manufacture of weapons and ammunition

While 'Manufacturing' is a Qualifying Activity, the end-user profile for ISIC 252 typically involves mainland government entities. Forensic scrutiny focuses on the 'De Minimis' threshold (5% or AED 5m) and whether the 'Mainland PE' risk is triggered by installation or maintenance services performed outside the Free Zone.

Audit Red Flag

Misclassification of income from mainland government procurement contracts as Qualifying Income without applying the 9% rate for non-Free Zone sourced revenue.

Not sure which activity applies to you?

Scout maps your business description to the correct activity code automatically.