Wholesale of textiles, clothing and footwear

Wholesale of textiles and clothing falls under 'Distribution of goods or materials' as a Qualifying Activity. Forensic focus is on the 'Designated Zone' requirement; if the goods do not physically enter/exit a DZ or if the customer is the end-user, the income is taxed at 9%. Auditors will verify the 'resale or processing' intent of the counterparty.

Audit Red Flag

Direct sales to end-consumers (B2C) disguised as wholesale (B2B) to avoid the 'Excluded Income' classification.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.