Demolition

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Demolition (ISIC 4311) is classified as a service directly related to Immovable Property. Under the UAE CT framework, income derived from the development, sale, leasing, or management of Immovable Property—including site preparation and destruction—is generally treated as an Excluded Activity when the property is located in the UAE, subjecting the income to the 9% corporate tax rate regardless of Free Zone status.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 3 (Excluded Activities) and Article 5 (Income from Immovable Property)

Audit Red Flag

Attempting to categorize demolition fees as 'General Contracting' or 'Technical Consulting' to qualify for the 0% rate, while the underlying activity is an Excluded Activity related to Immovable Property.

2 licensable activities under this classification

Civil Exploding WorksExternal approval required

Wrecking & Demolition WorksExternal approval required

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