Construction of buildings

ISIC 41 involves the development and construction of immovable property. Under the UAE CT framework, income derived from immovable property is generally excluded from the 0% Qualifying Income regime unless it involves Commercial Property located in a Free Zone and the transaction is with another Free Zone Person. Construction services are not listed as a 'Qualifying Activity' under the relevant Ministerial Decisions, meaning income is typically subject to the 9% rate.

Audit Red Flag

Re-characterization of construction revenue as 'Project Management' or 'Technical Consulting' to bypass the immovable property exclusion and claim the 0% rate.

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