Financial leasing

Financial leasing is categorized as a Qualifying Activity under the 'Financing and Leasing' head. Forensic auditors will scrutinize the 'Core Income Generating Activities' (CIGA), specifically the negotiation of terms, the management of the lease, and the assumption of credit risk. If the activity is deemed 'Banking' or 'Insurance' without the specific regulatory carve-outs, it may be reclassified as an Excluded Activity.

Audit Red Flag

Misclassification of 'Operating Leases' as 'Financial Leases' to claim the 0% rate when the substance of the contract does not transfer substantially all risks and rewards of ownership (IFRS 16 non-compliance).

Which UAE zones permit this activity?

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