Retail sale of food, beverages and tobacco in specialized stores

Retail trade is explicitly defined as an Excluded Activity. Revenue derived from ISIC 472 transactions with end-consumers (natural persons) is subject to the 9% Corporate Tax rate. If such revenue exceeds the de minimis threshold (lower of 5% of total revenue or AED 5 million), the entity risks losing its Qualifying Free Zone Person status for the relevant tax period.

Audit Red Flag

Attempting to recharacterize B2C retail revenue as B2B 'Distribution of Goods' to qualify for the 0% regime.

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