Inland passenger water transport (ISIC 5021) is distinct from 'Shipping' as defined in the UAE CT framework. Shipping requires international transit or operation in international waters. Inland transport is considered a domestic service; therefore, income derived from this activity is 'Excluded Income' for a Qualifying Free Zone Person (QFZP). If this income exceeds the de minimis threshold (5% of total revenue or AED 5M), the entity risks losing its QFZP status entirely.
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Legal Reference
Ministerial Decision No. 229 of 2025, Article 3 (Excluded Activities)
Audit Red Flag
Misclassification of inland canal or harbor cruises as 'Shipping' to exploit the 0% Qualifying Activity rate.