Inland passenger water transport

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: STANDARDAI-derived

Inland passenger water transport (ISIC 5021) is distinct from 'Shipping' as defined in the UAE CT framework. Shipping requires international transit or operation in international waters. Inland transport is considered a domestic service; therefore, income derived from this activity is 'Excluded Income' for a Qualifying Free Zone Person (QFZP). If this income exceeds the de minimis threshold (5% of total revenue or AED 5M), the entity risks losing its QFZP status entirely.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 3 (Excluded Activities)

Audit Red Flag

Misclassification of inland canal or harbor cruises as 'Shipping' to exploit the 0% Qualifying Activity rate.

2 licensable activities under this classification

Leisure Yachts & Boats RentalExternal approval required

Small Boats Passenger ServicesExternal approval required

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