Renting and leasing of motor vehicles

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: STANDARDAI-derived

Under Ministerial Decision No. 229 of 2025, 'Leasing of Aircraft or Ships' is a Qualifying Activity, but 'Renting and leasing of motor vehicles' (ISIC 7710) is not listed as a Qualifying Activity. Consequently, income from this activity is treated as Non-Qualifying Income, subject to the 9% Corporate Tax rate unless it falls within the De Minimis threshold.

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Legal Reference

Article 3, Clause 1 of Ministerial Decision No. 229 of 2025

Audit Red Flag

Attempting to reclassify motor vehicle leasing as 'Logistics Services' or 'Leasing of Aircraft or Ships' to qualify for the 0% rate.

14 licensable activities under this classification

Ambulances RentalExternal approval required

Buses RentalExternal approval required

From AED 600 (Ajman)

Car RentalExternal approval required

Car Rental By Electronic Media & Smart Apps.External approval required

Driving Test Vehicles RentalNo external approval required

Garbage Trucks RentalNo external approval required

Hourly Car RentalExternal approval required

Which UAE zones permit this activity?

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