Manufacture of military fighting vehicles

Qualifying · 0% eligible

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Under MD 229 of 2025, the manufacture of military vehicles is categorized under 'Manufacturing of goods or materials'. Forensic audit must verify 'Substantial Transformation' within the Free Zone. If the entity merely performs 'Assembly' of imported kits (CKD/SKD) without significant value-add, the FTA may recharacterize the activity as 'Trading', potentially triggering the 9% rate if the counterparty is a non-Free Zone person.

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Legal Reference

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

Audit Red Flag

Misclassification of 'After-sales Maintenance, Repair, and Overhaul (MRO)' as 'Manufacturing' revenue to bypass the 5% de minimis threshold for non-qualifying services.

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