Manufacture of agricultural and forestry machinery

Manufacturing of machinery is a Qualifying Activity under MD 229 of 2025. Forensic audit focus is on the physical presence of specialized equipment and technical staff. If the entity lacks the industrial capacity to actually 'manufacture' (ISIC 2821), the income may be reclassified as 'Trading', which is subject to the 9% rate if the counterparty is a Mainland person.

Audit Red Flag

Re-characterization of 'Simple Assembly' as 'Manufacturing'—the FTA will scrutinize the 'Substantial Transformation' test to ensure the process isn't merely packaging or minor assembly of imported kits.

Which UAE zones permit this activity?

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