Creative, arts and entertainment activities

ISIC Code 900 is not listed as a 'Qualifying Activity' under the executive regulations. Consequently, income derived from creative and entertainment activities is categorized as 'Non-Qualifying Income'. If such income exceeds the De Minimis limit of 5% of total revenue or AED 5,000,000, the entity loses its Qualifying Free Zone Person status entirely, subjecting all taxable income to the 9% corporate tax rate.

Audit Red Flag

Revenue leakage from 'End Consumer' (B2C) transactions being misclassified as B2B Qualifying Income to circumvent the 5% De Minimis threshold.

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