Electricity, gas, steam and air conditioning supply

Under the Qualifying Income framework, the distribution of natural gas and electricity is explicitly listed as an Excluded Activity. ISIC 35 covers the generation and distribution of power and cooling; income derived from these activities by a Qualifying Free Zone Person is subject to the 9% Corporate Tax rate as it fails the 'Qualifying Income' test, regardless of the customer's location.

Audit Red Flag

Re-characterization of utility supply as 'property management services' or 'ancillary facility fees' to circumvent the Excluded Activity classification.

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