Retail sale of clothing, footwear and leather articles in specialized stores

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: STANDARDAI-derived

Under the UAE CT regime, the retail sale of goods to natural persons is classified as an Excluded Activity. Income from ISIC 4771 will be treated as Non-Qualifying Income. If such income exceeds the de minimis threshold (lower of 5% of total revenue or AED 5,000,000), the entity loses its Qualifying Free Zone Person status entirely.

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Legal Reference

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

Audit Red Flag

Artificial fragmentation of retail invoices to appear as B2B wholesale transactions to circumvent the 'Excluded Activity' status.

18 licensable activities under this classification

Arabwear TradingNo external approval required

Babywear TradingNo external approval required

Face Masks & Gloves TradingExternal approval required

Handbags & Leather Products TradingNo external approval required

Imitation Jewellery TradingNo external approval required

Ladies' Garments TradingNo external approval required

Men Underwears TradingNo external approval required

Which UAE zones permit this activity?

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

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