Activities of trade unions

Trade unions under ISIC 942 are typically classified as Public Benefit Entities. Under the UAE CT framework, they are exempt provided their activities are not for profit and they do not engage in a 'Business' or 'Business Activity' that exceeds the threshold for commerciality. Forensic focus is on the 'non-distribution of profit' clause and the source of funding (membership dues vs. commercial trade).

Audit Red Flag

Cross-subsidization of commercial activities where the union provides paid consultancy or recruitment services to non-members at market rates without separate tax accounting.

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