Inland water transport

2 activity classes

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: STANDARDAI-derived

Inland water transport (ISIC 502) is restricted to the territorial waters of the UAE. Under MD 229 of 2025, it fails the 'International Traffic' test required for the 'Shipping' Qualifying Activity. Consequently, income derived from this activity is treated as taxable at 9% if it exceeds the de minimis threshold or is conducted with non-Free Zone persons.

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Legal Reference

Article 3, Clause 2 (Excluded Activities) of Ministerial Decision No. 229 of 2025

Audit Red Flag

Misclassification of inland barge or ferry revenue as 'Shipping' (International Traffic) to illicitly claim the 0% Qualifying Income rate.

Browse activity classes

ISIC 5021

Excluded · 9% taxable

Inland passenger water transport

2 licensable activities

DZ required

ISIC 5022