Retail sale of hardware, paints and glass in specialized stores

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: STANDARDAI-derived

Retail sale to the end consumer is categorized as an Excluded Activity under the UAE Corporate Tax framework for Qualifying Free Zone Persons. Even if conducted within a Designated Zone, the nature of 'Retail' (ISIC 4752) precludes the 0% rate, subjecting all taxable income from this activity to the standard 9% rate once the threshold is exceeded.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 3, Clause 1(g)

Audit Red Flag

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

67 licensable activities under this classification

Agricultural Tools TradingExternal approval required

Bricks TradingNo external approval required

Building & Construction Materials TradingNo external approval required

Building Hardware & Tools TradingNo external approval required

Building Maquettes & Models Requisites TradingNo external approval required

Building Metal Products TradingNo external approval required

Cargo Containers TradingNo external approval required

Which UAE zones permit this activity?

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