Activities of other membership organizations

Activities under ISIC 949 are generally considered 'Excluded Activities' for Qualifying Free Zone Persons (QFZP) as they do not fall under the exhaustive list of Qualifying Activities. Unless the entity is specifically designated as a 'Public Benefit Entity' under Article 9 of the Corporate Tax Law via Cabinet Decision, income is subject to the standard 9% rate. Forensic focus is on the 'De Minimis' threshold if the entity attempts to maintain QFZP status while earning non-qualifying membership revenue.

Audit Red Flag

Reclassification of commercial service fees or consultancy income as 'membership subscriptions' to exploit the 0% rate or exempt status.

Not sure which activity applies to you?

Scout maps your business description to the correct activity code automatically.