Construction of roads and railways

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

ISIC 4210 pertains to civil engineering on immovable property. Under the UAE CT framework, income derived from immovable property (including construction and development) is generally treated as an Excluded Activity when the property is located outside a Free Zone or involves non-Free Zone persons. Forensic audit focuses on the 'situs' of the road/railway assets; if the infrastructure is on mainland UAE, the income is subject to the 9% rate regardless of the contractor's Free Zone status.

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Legal Reference

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

Audit Red Flag

Attempting to classify infrastructure construction as 'General Services' to avoid the Immovable Property exclusion clause.

6 licensable activities under this classification

Bridges & Dams ContractingExternal approval required

Helicopter Landing Pad (Helipad) InstallationExternal approval required

Railways ContractingExternal approval required

From AED 1,000 (Abu Dhabi)

Road ContractingExternal approval required

From AED 1,000 (Abu Dhabi)

Road Marking ContractingExternal approval required

Tunnels ContractingExternal approval required

From AED 1,000 (Abu Dhabi)

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