Manufacture of power-driven hand tools

Manufacturing of goods is a Qualifying Activity. Forensic focus will be on the 'substantial transformation' test. If the process involves only minor assembly of power-tool kits (CKD/SKD), the FTA may reclassify the income as 'Distribution', which requires the customer to be a Designated Zone person to remain qualifying.

Audit Red Flag

Re-characterization of 'Simple Assembly' or 'Packaging' of imported components as 'Manufacturing' to illicitly claim Qualifying Activity status.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.