Activities of households as employers of domestic personnel

ISIC 970 covers private households employing staff. Under the UAE CT framework, natural persons are only taxable on business turnover exceeding AED 1 million. Domestic employment is categorized as personal consumption/private activity rather than a 'Business Activity' for the purpose of generating Qualifying Income. If conducted through a Free Zone entity, it fails the 'Qualifying Activity' test under the 2025 framework as it lacks commercial character and is explicitly excluded from preferential rates.

Audit Red Flag

Attempting to deduct domestic staff salaries or visa costs as business expenses against a separate commercial license or corporate entity's taxable income.

Not sure which activity applies to you?

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