Motion picture, video and television programme production, sound recording and music publishing activities

Activities under ISIC 59 often involve a hybrid of service provision (Qualifying) and IP licensing (potentially Excluded if not 'Qualifying Intellectual Property'). Forensic auditors will scrutinize the 'Economic Substance' of music publishing arms to ensure the IP is managed and controlled within the Free Zone, rather than merely acting as a conduit for foreign parent companies. B2C revenue from streaming or cinema tickets in the UAE mainland is strictly 9%.

Audit Red Flag

Reclassification of 'Service Income' as 'Royalties' for IP developed outside the UAE, which may trigger the 9% rate on non-qualifying intellectual property income.

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