TaxSavvyAE

Audit requirement for free zone companies

Does my small free zone company really need an audit every year?

The situation

A Qualifying Free Zone Person must prepare audited financial statements whatever its size. Many free zones also ask for audited accounts at licence renewal under their own rules.

The law

  • Ministerial Decision 84 of 2025: Audited statements for Qualifying Free Zone Persons and for taxable persons with revenue above AED 50 million

What it means for you

If you claim the 0% rate, no audit means no status. If you are not a Qualifying Free Zone Person and revenue is below AED 50 million, Corporate Tax law does not demand an audit, but your zone may. Example: a zone e-commerce company with AED 1.2 million revenue claiming 0% needs an audit; the same company on Small Business Relief needs one only if the zone asks. Audit fees for small companies run about AED 5,000 to 15,000.

What to do

  1. Decide your tax status for the year.
  2. Check your zone's renewal rules.
  3. Appoint an auditor registered in the UAE.
  4. Close the books early so the audit fits the return deadline.

We can do this for youFree zone company setup: choosing between DMCC, JAFZA, IFZA, Meydan, RAKEZ, ADGM and others, licence, visas and tax status: AED 3,500

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