Accommodation and food service activities

2 activity divisions

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: STANDARDAI-derived

Activities under ISIC Code I (Accommodation and Food Services) are primarily B2C (Business-to-Consumer). Under the UAE Corporate Tax regime, transactions with natural persons are categorized as 'Excluded Activities' for Qualifying Free Zone Persons. Additionally, the exploitation of immovable property for lodging/accommodation is specifically excluded from the 0% preferential rate, subjecting the entity to the standard 9% rate on income exceeding the AED 375,000 threshold.

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Legal Reference

Ministerial Decision No. 265 of 2023, Article 3, Clause 1(a) and 1(j); Cabinet Decision No. 139 of 2023, Article 2.

Audit Red Flag

Attempting to classify hospitality revenue as 'Qualifying Income' by incorrectly categorizing it as 'Headquarter Services' or 'Ancillary Services' to a Qualifying Activity.

Browse divisions

ISIC 55

Excluded · 9% taxable

Accommodation

1 licensable activity

DZ required

ISIC 56

Excluded · 9% taxable

Food and beverage service activities

16 licensable activities

DZ required

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