Construction

3 activity divisions

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Construction is inherently linked to immovable property. Under the UAE CT regime, income derived from immovable property located in the UAE (except for transactions with other Qualifying Free Zone Persons for commercial property) is excluded from the 0% rate. Forensic focus is on the 'location of the asset' and the 'nature of the contract' to ensure domestic construction activity is taxed at 9%.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 3, Clause 1(a)

Audit Red Flag

Misclassification of 'Construction Services' as 'Professional Services' or 'Technical Consulting' to circumvent the excluded status of immovable property income.

Browse divisions

ISIC 41

Excluded · 9% taxable

Construction of buildings

6 licensable activities

DZ required

ISIC 42

Excluded · 9% taxable

Civil engineering

23 licensable activities

DZ required

ISIC 43

Excluded · 9% taxable

Specialized construction activities

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