Sports activities and amusement and recreation activities

ISIC Code 93 activities are not listed as 'Qualifying Activities' under the UAE Free Zone Corporate Tax regime. As these activities typically involve services provided to natural persons or general recreational services, they are categorized as Excluded Activities. If the revenue from these activities exceeds the de minimis threshold (5% of total revenue or AED 5,000,000, whichever is lower), the entity loses its Qualifying Free Zone Person status and becomes subject to the standard 9% tax rate on all taxable income.

Audit Red Flag

Misclassification of B2C (Business-to-Consumer) recreational revenue as B2B (Business-to-Business) service fees to artificially satisfy the de minimis threshold.

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