Annual audit
Statutory audit under DIFC Companies Law for licence renewal, shareholders and banks.
DIFC Approved Auditors: Audit, Accounting and Tax for Dubai International Financial Centre Companies
DIFC companies must have their annual accounts audited under DIFC Companies Law No. 5 of 2018, unless they are small private companies with turnover below USD 5 million and no more than 20 shareholders. DFSA-regulated firms need a DFSA-registered auditor. All DIFC entities also register for UAE corporate tax. SGA World provides approved audits, accounting and tax services for DIFC companies.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
DIFC at a glance
- Company law
- DIFC Companies Law No. 5 of 2018
- Audit exemption
- Small private: < USD 5m, ≤ 20 shareholders
- Regulated firms
- DFSA-registered auditor
- Annual filing
- Confirmation statement at renewal
- Corporate tax
- 0% QFZP / 9% standard
The Dubai International Financial Centre (DIFC) is a financial free zone with its own company law, courts, employment law and regulator. DIFC companies follow DIFC Companies Law No. 5 of 2018 for their accounts and audit, and financial firms regulated by the DFSA face extra audit and reporting rules. On top of that, every DIFC entity deals with UAE corporate tax.
SGA World provides DIFC approved audits, together with accounting, bookkeeping, corporate tax and VAT services for DIFC companies, holding structures and family office entities, from our office in Business Bay, Dubai.
Working across several zones? See our overview of all UAE free zones.
- Companies Law No. 5 of 2018
- DIFC law
- Small private company audit exemption limit
- USD 5m
- Separate rules for regulated financial firms
- DFSA
- Corporate tax for QFZPs and others
- 0% / 9%
At a glance
DIFC Companies: Key Facts
- Audit: required under DIFC Companies Law No. 5 of 2018, unless the company qualifies as a small private company.
- Small company: turnover below USD 5 million and no more than 20 shareholders; holders of 10% can still require an audit.
- Regulated firms: DFSA authorised firms, funds and listed companies need a DFSA-registered auditor and regulatory audit reports.
- Annual filing: a confirmation statement is filed with the DIFC Registrar at licence renewal.
- Corporate tax: every DIFC entity registers; 0% applies only to a Qualifying Free Zone Person on qualifying income.
- VAT: standard UAE VAT applies; many financial services are exempt or zero-rated.
Our services
Which Services Do We Provide for DIFC Companies?
Accounting and IFRS reporting
Monthly books, consolidation for holding structures and IFRS financial statements.
Corporate tax and QFZP
Registration, QFZP assessment, holding company exemptions and the annual return.
Transfer pricing
Intercompany loans, management fees and group charges priced at arm's length.
VAT
VAT on financial services, exempt and zero-rated supplies and input tax recovery.
AML and compliance
AML frameworks, UBO records and compliance reviews for DIFC entities.
About the centre
What Is the Dubai International Financial Centre (DIFC)?
DIFC is a financial free zone in Dubai with its own civil and commercial laws based on international practice, its own DIFC Courts, and an independent financial regulator, the Dubai Financial Services Authority (DFSA). Company registration is handled by the DIFC Registrar of Companies.
Two broad groups of businesses operate in DIFC:
- Regulated firms licensed by the DFSA, such as banks, asset managers, brokers, insurers and funds;
- Non-regulated companies, such as holding companies, family offices, professional service firms, fintechs and special purpose vehicles.
The audit and reporting rules differ between the two groups, so the first step is always to confirm which one your company belongs to.
Audit rules
Which DIFC Companies Need an Audit?
- Private company (non-regulated)
- Annual audit required unless it qualifies as a small private company.
- Small private company
- Turnover below USD 5 million and no more than 20 shareholders (and the same in the previous year if trading for more than a year): unaudited accounts allowed, but shareholders with 10% can demand an audit.
- Public company
- Annual audit required.
- DFSA authorised firm, fund or listed company
- Audit by a DFSA-registered auditor, plus regulatory audit reports such as the regulatory return and client money reports where relevant.
- Qualifying Free Zone Person (any size)
- Audited financial statements required every year to keep the 0% corporate tax rate, even if DIFC law would allow unaudited accounts.
A small DIFC company that wants to be a QFZP still needs audited accounts for corporate tax purposes.
Approved auditors
Why Does a DIFC Company Need an Approved Auditor?
Audited accounts for a DIFC company must be signed by an auditor that is recognised for DIFC companies, and DFSA-regulated firms must use an auditor on the DFSA's register of auditors. Choosing the right auditor matters because:
- the audit report supports your licence renewal and confirmation statement;
- banks, investors and counterparties rely on it;
- the same audited accounts support your corporate tax return and any QFZP claim.
SGA World audits DIFC companies and plans each engagement around the licence renewal date and the corporate tax filing deadline.
Tax
How Do Corporate Tax and VAT Apply in DIFC?
Corporate tax. DIFC entities are free zone persons and must register for UAE corporate tax. A company that meets the conditions to be a Qualifying Free Zone Person pays 0% on qualifying income, which can include certain regulated financial services, fund management and holding activities, and 9% on other taxable income. Dividends and gains from qualifying shareholdings are often exempt under the participation exemption, which matters for DIFC holding companies.
VAT. DIFC is not a designated zone, so normal UAE VAT rules apply. Many financial services are exempt (for example margin-based services) or zero-rated when supplied to customers outside the UAE, while fee-based services are usually taxed at 5%. This affects how much input VAT you can recover.
Employment. DIFC has its own employment law. Employers contribute to the DEWS savings plan instead of paying end-of-service gratuity. See our payroll services.
Worked example
Example: A Small DIFC Holding Company
A DIFC private company holds shares in two operating companies in Saudi Arabia and India. It has three shareholders and income below USD 5 million, almost all dividends.
- DIFC audit: as a small private company it may prepare unaudited accounts, unless a shareholder with 10% or more asks for an audit.
- Corporate tax: dividends from qualifying shareholdings are often exempt under the participation exemption, so the company may have little taxable income either way.
- QFZP: if it also earns other income, such as management fees from the subsidiaries, and wants 0% on qualifying income, it needs audited accounts.
- Decision: compare the audit cost with the tax at stake, and remember that banks and investors often expect audited figures anyway.
We map this out before the year end, so the company chooses deliberately rather than by default.
What to prepare
What Documents Do We Need for a DIFC Audit?
Company records
DIFC certificate, articles of association, registers of members and directors, and board minutes.
Accounts
Trial balance, general ledger, bank statements and confirmations.
Investments
Share certificates, investee financial statements and valuation support.
Group and related parties
Group chart, intercompany agreements, loans and balances.
Tax
Corporate tax registration, QFZP analysis, VAT returns.
Regulated firms
DFSA licence details, regulatory returns and client money records, where relevant.
Fees and timing
How Long Does a DIFC Audit Take and What Affects the Fee?
For a non-regulated holding or service company with organised books, fieldwork usually takes one to three weeks. Plan the audit so the accounts are ready well before your licence renewal and confirmation statement.
The fee depends on whether the company is DFSA-regulated, the number of investments and subsidiaries, whether consolidation is needed, the condition of the books and whether corporate tax and QFZP work is included. We confirm a fixed fee after reviewing your trial balance.
How we work
How Does Our DIFC Audit Process Work?
Step01
Scope
Confirm whether the company is regulated, small or a QFZP, and which reports are needed.
Step02
Plan
Agree the timetable around your licence renewal and corporate tax deadline.
Step03
Fieldwork
Test balances, investments, intercompany positions and confirmations.
Step04
Report
Issue the audited financial statements and support your filings.
Why SGA World
Why Choose SGA World as Your DIFC Approved Auditor?
Approved audits for DIFC
Audit reports prepared to DIFC 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 DIFC Industries Do We Support?
Holding companies and SPVs
- Consolidation and investment accounting
- Participation exemption for dividends and gains
- Intercompany loans and transfer pricing
Family offices and wealth structures
- Investment portfolios and valuation
- Distributions and related-party balances
- Corporate tax position of family entities
Asset and fund management
- Management and performance fee revenue
- Fund accounting and investor reporting
- VAT on fund management services
Fintech and technology
- Revenue recognition for platforms and subscriptions
- Investor reporting and cash runway
- Innovation licence and growth-stage compliance
Legal, consulting and advisory firms
- Time-based billing and work in progress
- Partner and owner pay under connected person rules
- VAT on cross-border professional services
Avoid problems
Common Mistakes DIFC Companies Make
Assuming a small company never needs an audit
QFZP status or a 10% shareholder can require one
Using an auditor not registered for regulated firms
DFSA-regulated firms need a DFSA-registered auditor
Missing the confirmation statement at renewal
Licence renewal is delayed
Treating all financial services as VAT-exempt
Fee-based services are usually standard-rated
Undocumented intercompany loans
Transfer pricing adjustments
Paying gratuity instead of DEWS
DIFC employment rules differ from the mainland
DIFC desk
Get Your DIFC Audit and Tax Done on Time
Tell us your company type, financial year end and licence renewal date. We will confirm the audit and tax requirements and propose a clear scope and fee.
We handle
- DIFC approved audits
- IFRS accounts and consolidation
- Corporate tax and QFZP
- VAT on financial services
- Transfer pricing and AML
Location: Dubai
Dubai Office
Our Dubai office in The Exchange Tower, Business Bay is a few minutes from DIFC 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
DIFC Audit and Accounting – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.Do DIFC companies need an annual audit?
Yes, under DIFC Companies Law No. 5 of 2018, unless the company is a small private company with turnover below USD 5 million and no more than 20 shareholders.
02.Do I need a DIFC approved auditor?
Yes. DIFC company accounts must be audited by an auditor recognised for DIFC companies, and DFSA-regulated firms must use a DFSA-registered auditor. SGA World provides DIFC approved audits.
03.Can a small DIFC company avoid an audit?
Under DIFC law a small private company can prepare unaudited accounts, but shareholders holding 10% can require an audit, and a company claiming QFZP status needs audited accounts for corporate tax.
04.Do DIFC companies pay corporate tax?
Yes. All DIFC entities register for corporate tax. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income.
05.Is DIFC a designated zone for VAT?
No. Normal UAE VAT rules apply in DIFC. Many financial services are exempt or zero-rated, while fee-based services are usually standard-rated at 5%.
06.What is the DIFC confirmation statement?
An annual filing with the DIFC Registrar of Companies, made at licence renewal, which replaced the former annual return.
07.Can shareholders require a small DIFC company to be audited?
Yes. Under DIFC law, shareholders holding at least 10% can require a small private company to have its accounts audited.
08.Do DFSA-regulated firms have different audit rules?
Yes. DFSA authorised firms, funds and listed companies must use an auditor registered with the DFSA and may need regulatory audit reports, such as client money reports.
09.Can a DIFC holding company pay 0% corporate tax?
Holding shares can be a qualifying activity for a Qualifying Free Zone Person, and dividends and gains on qualifying shareholdings are often exempt under the participation exemption. All QFZP conditions must be met, including audited accounts.
10.What is DEWS in DIFC?
The DIFC Employee Workplace Savings scheme, through which DIFC employers make monthly contributions for employees instead of the end-of-service gratuity used on the mainland.
11.Does DIFC have its own beneficial ownership rules?
Yes. DIFC entities follow DIFC beneficial ownership regulations rather than the federal Cabinet Decision that applies to mainland and commercial free zone companies.
12.How long does a DIFC audit take?
For a non-regulated company with organised books, fieldwork usually takes one to three weeks. Start well before licence renewal.
13.Which accounting standards do DIFC companies use?
Most DIFC companies prepare financial statements under IFRS, which also forms the starting point for the corporate tax computation.
14.Do you have an office near DIFC?
Yes. Our Dubai office in The Exchange Tower, Business Bay is a few minutes from DIFC.
15.Which services does SGA World provide for DIFC companies?
DIFC approved audits, accounting and IFRS reporting, corporate tax and QFZP reviews, transfer pricing, VAT and AML and UBO support.
References:Dubai International Financial Centre · Dubai Financial Services Authority · Federal Tax Authority · UAE Ministry of Finance — reviewed 14 October 2026
