Tanning and dressing of leather; dressing and dyeing of fur

Qualifying · 0% eligible

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

ISIC 1511 involves the substantial transformation of raw hides into leather. Under MD 229 of 2025, this is classified as 'Manufacturing'. Forensic auditors will verify the 'Principal' status of the entity; if the entity does not take title to the raw materials, the income may be reclassified as a service, which requires a different qualifying nexus or may be subject to the 9% rate if provided to mainland customers.

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Legal Reference

Article 2, Clause 1(a) of Ministerial Decision No. 229 of 2025

Audit Red Flag

Re-characterization of 'Tolling Arrangements' (processing hides owned by third parties) as 'Manufacturing' to bypass the de minimis threshold for non-qualifying services.

1 licensable activity under this classification

Hides TanningNo external approval required

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