Retail sale of games and toys in specialized stores

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: STANDARDAI-derived

Under the UAE Corporate Tax regime, 'Retail' is explicitly defined as an Excluded Activity. Income from the sale of goods to end-consumers for personal consumption (B2C) does not constitute Qualifying Income for a Qualifying Free Zone Person (QFZP). Even if conducted within a Designated Zone, the retail nature of ISIC 4764 subjects the net profit to the standard 9% rate once the de minimis threshold is exceeded or if the entity opts out of the QFZP regime.

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Legal Reference

Ministerial Decision No. 139 of 2023, Article 3, Clause 1(a) and Ministerial Decision No. 229 of 2025

Audit Red Flag

Artificial fragmentation of retail transactions into 'wholesale' contracts to circumvent the Excluded Activity classification.

2 licensable activities under this classification

Kids Rides & Games TradingNo external approval required

Toys & Games TradingNo external approval required

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