Annual audit
Statutory audit of your financial statements for licence renewal, banks and corporate tax.
DAFZA Approved Auditors: Audit, Accounting and Tax for Dubai Airport Freezone Companies
Companies in Dubai Airport Freezone (DAFZA) must keep proper accounts and submit audited financial statements before their licence is renewed. They also register for UAE corporate tax, where the 0% rate applies only to a Qualifying Free Zone Person, and for VAT once supplies pass AED 375,000. SGA World provides approved audits, accounting, VAT and corporate tax services for DAFZA companies.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
DAFZA at a glance
- Authority
- Dubai Airport Freezone (part of DIEZ)
- Company types
- FZE, FZCO, branch
- Annual audit
- Before licence renewal
- Corporate tax
- 0% QFZP / 9% standard
- VAT
- 5%, designated zone rules for goods
Dubai Airport Freezone (DAFZA) sits next to Dubai International Airport and is home to companies in aviation, logistics, trading, technology and luxury goods. Like other Dubai free zones, it expects audited financial statements every year before it renews a company's licence, and every DAFZA company now deals with UAE corporate tax and VAT as well.
SGA World provides DAFZA approved audits, together with accounting, bookkeeping, VAT and corporate tax services for DAFZA companies, from FZEs and FZCOs to branches of foreign groups, from our office in Business Bay, Dubai.
Working across several zones? See our overview of all UAE free zones.
- DAFZA is part of Dubai Integrated Economic Zones
- DIEZ
- Audited accounts before licence renewal
- Annual
- Corporate tax for QFZPs and others
- 0% / 9%
- VAT, with designated zone rules for goods
- 5%
At a glance
DAFZA Companies: Key Facts
- Authority: Dubai Airport Freezone, part of Dubai Integrated Economic Zones (DIEZ) with Dubai Silicon Oasis and Dubai CommerCity.
- Audit: audited financial statements are submitted before licence renewal.
- Corporate tax: every DAFZA company registers; 0% only for a Qualifying Free Zone Person on qualifying income.
- VAT: register once taxable supplies exceed AED 375,000; designated zone rules can apply to goods.
- Records: keep accounting records for 7 years for corporate tax.
- Mainland sales: possible through a Dubai mainland permit or branch, but can affect QFZP status.
Our services
Which Services Do We Provide for DAFZA Companies?
Bookkeeping and accounting
Monthly books, reconciliations, management accounts and year-end statements.
Corporate tax and QFZP
Registration, QFZP assessment, de minimis testing and the annual return.
VAT
Registration, returns and designated zone VAT treatment for goods.
Transfer pricing
Benchmarking and documentation for related-party transactions.
Payroll
Monthly payroll, gratuity and leave for your DAFZA team.
About the zone
What Is Dubai Airport Freezone (DAFZA)?
Dubai Airport Freezone was set up in 1996 next to Dubai International Airport and today forms part of Dubai Integrated Economic Zones (DIEZ), alongside Dubai Silicon Oasis and Dubai CommerCity. Its location makes it popular with businesses that move goods or people by air.
Companies can set up as:
- a Free Zone Establishment (FZE), with a single shareholder;
- a Free Zone Company (FZCO), with two or more shareholders;
- a branch of a UAE or foreign company.
Licences cover trading, services and light industrial activities. Whatever the licence, the company must keep accounts, have them audited and meet federal tax rules.
Compliance
What Must DAFZA Companies Do Every Year?
- Audited financial statements
- Accounts prepared under IFRS and audited each year, submitted to DAFZA before licence renewal.
- Corporate tax return
- Filed on EmaraTax within 9 months of the financial year end, whether or not tax is due.
- QFZP review
- If relying on the 0% rate, check qualifying income, the de minimis limit and substance each year.
- VAT returns
- Quarterly or monthly returns once registered; correct treatment of designated zone supplies.
- Transfer pricing
- Related-party transactions at arm's length, with disclosures and documentation where required.
- UBO records
- Keep the register of ultimate beneficial owners up to date with the authority.
Approved auditors
Why Does a DAFZA Company Need an Approved Auditor?
DAFZA accepts audited financial statements only from audit firms on its list of approved auditors. A report signed by a firm that is not on the list can be rejected at licence renewal, which means a second audit and a delayed licence.
When you appoint a DAFZA approved auditor, check that:
- the firm is on the current DAFZA approved list for this year;
- the audit partner is a registered auditor with the UAE Ministry of Economy and Tourism;
- the firm can finish the audit before your licence renewal date;
- the same audited accounts can be used for your corporate tax return and any QFZP claim.
SGA World audits DAFZA companies every year and plans each audit around the licence renewal date.
Tax
How Do Corporate Tax and VAT Apply in DAFZA?
Corporate tax. Every DAFZA company must register for corporate tax. A company that meets all the conditions to be a Qualifying Free Zone Person pays 0% on qualifying income, such as trading with other free zone companies or carrying out qualifying activities like logistics and distribution of goods, and 9% on other taxable income. Non-qualifying revenue must stay within the lower of 5% of revenue or AED 5 million, and audited accounts are a condition of QFZP status. Companies that are not QFZPs pay 0% on the first AED 375,000 of taxable income and 9% above.
VAT. DAFZA is listed as a designated zone for VAT, so supplies of goods within or between designated zones can be outside the scope of UAE VAT when the conditions are met. Services are taxed normally at 5%. Getting this distinction right is one of the most common VAT issues for trading companies in the zone.
See our guides to QFZP rules and corporate tax.
Worked example
Example: A DAFZA Trader With Mainland Customers
A DAFZA company imports electronics by air and sells them to distributors in Africa, to other free zone companies and to a few retailers in Dubai.
- Audit: DAFZA expects audited financial statements before licence renewal, so the audit is planned two months ahead.
- QFZP: sales to foreign distributors and free zone companies, and distribution from DAFZA to Dubai retailers who resell, can be qualifying. Sales to end consumers on the mainland are not.
- De minimis: non-qualifying revenue must stay below the lower of 5% of revenue or AED 5 million. The company tags every invoice by customer type, so it can prove the test.
- VAT: DAFZA is a designated zone, so goods sold to other designated zones can be outside the scope of VAT, while goods released to the mainland bear import VAT.
The same audited figures then support the licence renewal, the corporate tax return and the bank's annual review.
What to prepare
What Documents Do We Need for a DAFZA Audit?
Company documents
DAFZA licence, memorandum and articles, share register and auditor appointment.
Accounts
Trial balance, ledgers, bank statements and confirmations.
Inventory
Stock count records, stock ledger, landed costs and goods in transit.
Customs and VAT
Customs declarations, VAT returns and designated zone movement records.
Related parties
Intercompany agreements and balances, with transfer pricing support.
Tax
Corporate tax registration and revenue by customer type for QFZP.
Fees and timing
How Long Does a DAFZA Audit Take and What Affects the Fee?
Most DAFZA trading and service companies need one to three weeks of fieldwork after the books are closed. Start at least two months before licence renewal.
The fee depends on revenue and transaction volume, inventory and stock count needs, the number of bank accounts and currencies, related-party activity, the state of the books and whether QFZP and corporate tax work is included. We confirm a fixed fee after reviewing your trial balance.
How we work
How Does Our DAFZA Audit Process Work?
Step01
Plan
Agree scope, timetable and documents, working back from your licence renewal date.
Step02
Fieldwork
Test balances, transactions, bank confirmations and inventory.
Step03
Report
Agree adjustments and issue the audited financial statements.
Step04
File
Submit for licence renewal and use the same figures for your corporate tax return.
Why SGA World
Why Choose SGA World as Your DAFZA Approved Auditor?
Approved audits for DAFZA
Audit reports prepared to DAFZA requirements and planned around your licence renewal and corporate tax return.
Ministry-approved audit firm
SGA World is a Ministry of Economy and Tourism approved audit firm, so our reports are accepted where it matters.
Audit and tax in one team
Auditors, VAT, corporate tax and transfer pricing specialists work together, so nothing falls between advisers.
Qualified chartered accountants
A team of chartered accountants qualified in India and the UK, focused on UAE rules.
500+ clients
Mainland and free zone companies, from start-ups and SMEs to regional groups.
Listed with major UAE banks
Our audit work is recognised by major UAE banks for facilities and account reviews.
Industries
Which DAFZA Industries Do We Support?
Aviation and aerospace
- Aircraft parts, maintenance and aviation services
- Revenue and inventory for high-value parts
- Foreign currency transactions and related-party charges
Logistics and freight
- Freight forwarding and warehousing revenue
- Designated zone VAT on goods movements
- QFZP qualifying activity checks for logistics services
Trading and distribution
- Inventory, landed costs and margins
- Re-exports and customs documentation
- Sales to mainland customers and the de minimis limit
E-commerce and retail
- Marketplace and payment-gateway reconciliations
- VAT on sales to UAE consumers
- Treatment of B2C revenue for QFZP purposes
Technology and services
- Subscription and project revenue under IFRS 15
- Intercompany service charges and transfer pricing
- Investor and board reporting
Luxury goods and jewellery
- High-value inventory counts and valuation
- AML due diligence for dealers in precious metals and stones
- Cash transaction reporting thresholds
Avoid problems
Common Mistakes DAFZA Companies Make
Leaving the audit until renewal week
Licence renewal is delayed
Assuming free zone means no corporate tax
Registration and returns are still required
Selling to the mainland without tracking it
Can breach the QFZP de minimis limit
Charging VAT on all goods movements
Designated zone rules may apply
No records of related-party charges
Transfer pricing adjustments and penalties
Outdated UBO register
Non-compliance with beneficial ownership rules
DAFZA desk
Get Your DAFZA Audit and Tax Done on Time
Tell us your licence renewal date and financial year end. We will plan the audit, accounts and tax filings around them.
We handle
- Annual audit for licence renewal
- Bookkeeping and accounts
- Corporate tax and QFZP review
- VAT registration and returns
- Transfer pricing and payroll
Location: Dubai
Dubai Office
Our Dubai office in The Exchange Tower, Business Bay is a short drive from Dubai Airport Freezone and serves free zone companies across the UAE.
Dubai
Office 1923, The Exchange Tower, Business Bay, Dubai
Abu Dhabi
Khalidiya Towers M-B6, W10, Al Bateen, Al Khalidiyah, Abu Dhabi
Talk to an auditor
Tell us your company type, jurisdiction and deadline. We will confirm the scope, timeline and fee.
- WhatsApp us+971 50 627 3556
- Call us+971 4 570 1795
- Email us[email protected]
- Book an appointmentChoose a time that suits you
Prefer a form? Send us a detailed enquiry.
Who prepared this page
Written and reviewed by SGA World's audit and tax team
This guide is prepared by chartered accountants at SGA World Auditing Accounting L.L.C S.P.C in Business Bay, Dubai, a Ministry of Economy and Tourism approved audit firm, and checked against Federal Tax Authority legislation and guidance. It is reviewed whenever the rules change.
- Last reviewed 9 October 2026
- Chartered accountants from India and the UK
- FTA representation through Saif Chartered Accountants
Have a question about your company?
Tell us your activity, jurisdiction and deadline. A chartered accountant will reply.
Ask an expertFrequently asked questions
DAFZA Audit and Accounting – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.Do DAFZA companies need an annual audit?
Yes. DAFZA expects companies to submit audited financial statements each year, usually before the licence is renewed.
02.Do I need a DAFZA approved auditor?
Yes. DAFZA accepts audit reports only from firms on its approved auditor list. SGA World provides DAFZA approved audits for companies in the zone.
03.Do DAFZA companies pay corporate tax?
Every DAFZA company must register for corporate tax. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income; other companies pay 0% up to AED 375,000 and 9% above.
04.Is DAFZA a designated zone for VAT?
Yes. Dubai Airport Freezone is listed as a designated zone, so some supplies of goods within or between designated zones can be outside the scope of VAT. Services are taxed normally.
05.Can a DAFZA company sell to mainland customers?
Yes, through a Dubai mainland permit or branch, or through a distributor. Mainland revenue is generally non-qualifying income for QFZP purposes and must be tracked against the de minimis limit.
06.What company types are available in DAFZA?
Free Zone Establishments (FZE) with one shareholder, Free Zone Companies (FZCO) with two or more shareholders, and branches of UAE or foreign companies.
07.Which services does SGA World provide for DAFZA companies?
Audit, bookkeeping and accounting, corporate tax and QFZP reviews, VAT, transfer pricing and payroll.
08.When should a DAFZA audit start?
At least two months before licence renewal, after the books are closed, so adjustments can be agreed and the report issued in time.
09.Can a DAFZA company use small business relief?
A resident company with revenue up to AED 3 million can elect small business relief, but not if it is a Qualifying Free Zone Person.
10.Are sales to Dubai mainland customers qualifying income?
Distribution of goods from a designated zone to a customer who resells or processes them can be qualifying. Sales to mainland end users are generally non-qualifying.
11.Does a DAFZA QFZP need audited accounts?
Yes. Audited financial statements are a condition of QFZP status.
12.What happens if a DAFZA company fails the de minimis test?
It is taxed at the standard rates and cannot be a Qualifying Free Zone Person for that year and the following four tax periods.
13.How long does a DAFZA audit take?
Usually one to three weeks of fieldwork for a typical trading or service company with organised books.
14.Is DAFZA part of DIEZ?
Yes. DAFZA is part of Dubai Integrated Economic Zones (DIEZ), together with Dubai Silicon Oasis and Dubai CommerCity.
References:Dubai Airport Freezone (DAFZA) · Federal Tax Authority · UAE Ministry of Finance — reviewed 14 October 2026
