Construction of buildings

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Construction of buildings (ISIC 4100) is inherently linked to Immovable Property. Under the UAE CT framework, income derived from Immovable Property located outside a Free Zone, or residential property within a Free Zone, is categorized as Excluded Income. Forensic auditors will scrutinize the 'Permanent Establishment' (PE) duration; if a construction site exceeds 6 months, it may trigger a PE for the Free Zone Person in the mainland, subjecting all related profits to the 9% standard rate.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 2, Clause 3(f) and Cabinet Decision No. 55 of 2023

Audit Red Flag

Mischaracterization of income from immovable property as 'Qualifying Services' to bypass the 5% de minimis threshold.

6 licensable activities under this classification

Building ContractingExternal approval required

From AED 1,000 (Abu Dhabi)

Meteorology Projects ContractingExternal approval required

From AED 2,000 (Abu Dhabi)

Pre-Fabricated Buildings ContractingNo external approval required

From AED 1,000 (Abu Dhabi)

Pre-Fabricated Concrete Houses ContractingExternal approval required

From AED 3,500 (Abu Dhabi)

Prestressed Concrete ContractingExternal approval required

From AED 3,500 (Abu Dhabi)

Steel Constructions ContractingExternal approval required

From AED 1,000 (Abu Dhabi)

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