Steam and air conditioning supply

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Under the framework of Ministerial Decision No. 229 of 2025, the distribution of steam and air conditioning is treated as a utility service. Similar to the distribution of natural gas and electricity, these are classified as Excluded Activities when provided to non-Free Zone Persons or for domestic consumption, failing the 'Qualifying Income' threshold regardless of the provider's location.

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Legal Reference

Article 3, Clause 1(g) of Ministerial Decision No. 229 of 2025

Audit Red Flag

Attempting to recharacterize utility supply revenue as 'Equipment Rental' or 'Facility Management' to bypass the excluded activity status of energy distribution.

2 licensable activities under this classification

District Cooling ServicesExternal approval required

Ice ProductionExternal approval required

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