Repair of machinery

Mixed · depends on counterparty

Forensic Analysis

DZ requiredSubstance: STANDARDAI-derived

ISIC 3312 is categorized as a service activity. Under MD 229 of 2025, income is Qualifying only if the recipient is a Free Zone Person (subject to beneficial recipient rules) or if the repair is deemed 'ancillary' to the manufacturing of the machinery itself. If the machinery belongs to a Mainland person, the income is Excluded and taxed at 9%.

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Legal Reference

Article 3, Clause 2 (Qualifying Activities) and Article 4 (Excluded Activities)

Audit Red Flag

Service leakage where technicians perform on-site repairs at Mainland facilities but invoice through the Free Zone entity to claim 0% tax.

7 licensable activities under this classification

Air-condition Repairing and maintenanceNo external approval required

Equipping? Repair, and Maintenance of Machines and Equipment for Military FactoriesExternal approval required

Military Robotics & Control Systems Repair and MaintenanceExternal approval required

Oil & Natural Gas Well Equipment Repairing & MaintenanceExternal approval required

Photocopiers Repairing & MaintenanceNo external approval required

Scales and dry Measures repairing and maintenanceNo external approval required

Typewriters & Calculators Repairing & MaintenanceNo external approval required

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