Sovereign Verdict
EXCLUDED
Statutory ISIC
0142
Regulatory Activity Scope
Raising of horses and other equines
"ISIC 0142 is categorized under primary production/agriculture. Under the UAE CT framework and Ministerial Decision No. 229 of 2025, this activity is not listed as a 'Qualifying Activity' for Free Zone Persons. Consequently, income derived from the raising of horses is treated as taxable income at the standard 9% rate, subject to the AED 375,000 threshold and potential Small Business Relief eligibility."
Forensic Audit Red Flag
Commingling of personal equestrian hobby expenses with corporate breeding operational costs to artificially reduce taxable net income.
Statutory Authority
Ministerial Decision No. 229 of 2025, Article 4, Clause 2
Nexus Requirement
Mainland DED license required for domestic trade; Free Zone status does not grant 0% rate for this activity.
2026 Substance Compliance
- Core Income Generating Activities (CIGA)
- Local Full-Time Employment Test
- Adequate Local OPEX