Manufacture of games and toys

Under the Qualifying Income regime, 'Manufacturing of goods or materials' is a Qualifying Activity. Forensic auditors will verify 'substantial transformation' of raw materials into toys. If the process is limited to simple assembly or packaging, the FTA may re-classify the activity as 'Distribution of Goods', which requires the customer to be a Free Zone Person to maintain Qualifying Income status.

Audit Red Flag

Re-characterization of 'Third-Party Distribution' as 'Manufacturing' to exploit the 0% rate on income from non-Free Zone customers.

Which UAE zones permit this activity?

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