Real estate activities on a fee or contract basis

Income from real estate activities on a fee basis is Qualifying only if the service is provided to a Free Zone Person and does not relate to 'Excluded Immovable Property'. If the underlying asset is mainland real estate, the income is generally treated as taxable at 9% regardless of the counterparty's location.

Audit Red Flag

Mischaracterizing brokerage fees from mainland property transactions as 'Qualifying Services' provided to a Free Zone Person.

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