Activities auxiliary to financial service and insurance activities

Under the UAE Corporate Tax framework, activities auxiliary to financial services and insurance are generally categorized as Excluded Activities. This is designed to prevent the erosion of the mainland tax base through financial intermediation. Even if provided to other Free Zone Persons, the nature of the activity (ISIC 66) falls under the broad exclusion of 'Banking', 'Insurance', and 'Financial Services' unless specifically carved out as a Qualifying Activity like Investment Management which has its own strict regulatory prerequisites.

Audit Red Flag

Mischaracterizing commission-based brokerage or insurance agency fees as 'Investment Management Services' to attempt to qualify for the 0% rate.

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