Retail sale of textiles in specialized stores

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: STANDARDAI-derived

Retail sale of textiles (ISIC 4751) is fundamentally a consumer-facing activity. Under the UAE Corporate Tax regime for Qualifying Free Zone Persons, 'Retail activities' and 'Activities with natural persons' are strictly defined as Excluded Activities. Consequently, income derived from this ISIC code is subject to the standard 9% corporate tax rate, as it fails the Qualifying Income test.

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Legal Reference

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

Audit Red Flag

Artificial fragmentation of retail sales into B2B wholesale invoices to bypass the 'Excluded Activity' definition for transactions with natural persons.

6 licensable activities under this classification

Blankets , Towels & Linens TradingNo external approval required

Flags & flagpoles TradingNo external approval required

Sewing & Embroidery Requisites TradingNo external approval required

Tents , Sheds & Tarpaulins TradingNo external approval required

Textile TradingNo external approval required

Threads & Yarns TradingNo external approval required

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