Activities of households as employers of domestic personnel

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: LIGHTAI-derived

ISIC 9700 covers private households employing staff. Under Ministerial Decision No. 229, this does not constitute a 'Qualifying Activity' for the 0% Corporate Tax regime. If performed by a Free Zone Person, it is categorized as an 'Excluded Activity' (providing services to natural persons) or simply a non-qualifying commercial activity, subjecting the income to the standard 9% rate if the de minimis threshold is exceeded.

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Legal Reference

Ministerial Decision No. 229 of 2023, Article 3, Clause 1(i)

Audit Red Flag

Attempting to claim 0% Free Zone tax rate on management fees by misclassifying commercial outsourcing services as private household domestic placement.

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