Demolition and site preparation

ISIC 431 involves physical intervention on immovable property. Under the UAE CT framework, services related to immovable property are generally excluded from Qualifying Income if the property is located outside a Free Zone or is residential. Even within a Free Zone, construction-related services are not listed as a 'Qualifying Activity' under the standard list, making the income taxable at 9% if it exceeds the de minimis threshold.

Audit Red Flag

Artificial fragmentation of demolition contracts into 'consultancy' or 'equipment rental' to bypass the 9% mainland service rate.

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