Installation of industrial machinery and equipment

Mixed · depends on counterparty

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Under MD 229 of 2025, installation is qualifying only if it is ancillary to the 'Manufacturing and Processing of goods' or performed for another Free Zone Person. If performed for a Mainland entity as a standalone service, it constitutes Excluded Income and must be tested against the De Minimis threshold.

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Legal Reference

Article 2, Clause 1(c) and Article 3, Clause 2 of Ministerial Decision No. 229 of 2025

Audit Red Flag

Misclassification of 'Construction Services' (Excluded) as 'Machinery Installation' to circumvent the 0% tax rate restrictions on Mainland real estate projects.

3 licensable activities under this classification

Communication & Wireless System Equipment InstallationExternal approval required

From AED 2,500 (Abu Dhabi)

Maintenance, Repair, and Installation Directed Energy WeaponsExternal approval required

Measuring Control System Installation and RepairingNo external approval required

From AED 750 (Abu Dhabi)

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