Annual audit
Statutory audit of your IFRS financial statements for DDA renewal, investors and corporate tax.
Dubai Internet City Audit Services: Audit, Accounting and Tax for DIC Tech Companies
Dubai Internet City (DIC) companies are licensed by the Dubai Development Authority (DDA) and submit audited IFRS financial statements each year before licence renewal. Tech companies there face specific issues: SaaS revenue under IFRS 15, capitalised software costs, investor funding and, for corporate tax, whether software income is qualifying IP income. SGA World provides DIC audits, accounting, VAT and tax.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
Dubai Internet City at a glance
- Regulator
- Dubai Development Authority (DDA)
- Focus
- Software, cloud, AI, fintech, IT services
- Annual audit
- Before licence renewal, via AXS
- Accounts
- IFRS
- Corporate tax
- 0% QFZP / 9% standard
Dubai Internet City (DIC) is one of the region's leading technology business districts, home to regional offices of global tech firms alongside thousands of software, cloud, AI, fintech and IT services companies and start-ups. Like Dubai Media City, it is regulated by the Dubai Development Authority (DDA). DIC companies submit audited financial statements each year before licence renewal, and every company deals with UAE corporate tax and VAT.
SGA World provides audit, accounting, bookkeeping, VAT and corporate tax services for Dubai Internet City companies, with particular experience of SaaS revenue, software development costs and investor reporting, from our office in Business Bay, Dubai.
Working across several zones? See our overview of all UAE free zones.
- Licenses and regulates DIC companies
- DDA
- Audited IFRS accounts before licence renewal
- Annual
- Key standard for SaaS and licence revenue
- IFRS 15
- Software income can be qualifying for QFZP
- Qualifying IP
At a glance
Dubai Internet City Companies: Key Facts
- Regulator: the Dubai Development Authority (DDA) licenses DIC companies, mostly as FZ-LLCs.
- Audit: audited financial statements are submitted through the AXS portal before licence renewal.
- Revenue: SaaS, licence and implementation revenue must follow IFRS 15.
- Development costs: research is expensed; development is capitalised only when IAS 38 criteria are met.
- Corporate tax: income from copyrighted software can be qualifying IP income for a QFZP, using the nexus approach.
- VAT: DIC is not a designated zone; software and IT services to UAE clients are taxed at 5%.
Our services
Which Services Do We Provide for Dubai Internet City Companies?
Accounting and IFRS reporting
Monthly books, deferred revenue schedules and year-end statements.
Corporate tax and QFZP
Qualifying IP income, QFZP assessment and the annual return.
VAT
VAT on software, SaaS and IT services to UAE and overseas clients.
Transfer pricing
Intercompany R&D, IP licences and group services at arm's length.
Virtual CFO
Cash runway, SaaS metrics and investor reporting.
About the zone
What Is Dubai Internet City?
Dubai Internet City is one of the TECOM business districts on Sheikh Zayed Road, next to Dubai Media City and Dubai Knowledge Park. It is regulated by the Dubai Development Authority (DDA).
DIC is home to:
- regional offices of global technology companies;
- software and SaaS businesses;
- AI, data and cloud companies;
- fintech and payments businesses;
- IT services, consulting and outsourcing firms;
- start-ups in incubator and accelerator programmes.
Most companies are set up as a Free Zone Limited Liability Company (FZ-LLC) or a branch of a UAE or foreign company. Whatever the structure, the company must keep proper accounts, have them audited and meet its tax obligations.
Tech accounting
Which Accounting Issues Matter Most for DIC Tech Companies?
| Area | What the auditor looks at | Standard |
|---|---|---|
| SaaS and subscriptions | Revenue spread over the service period; deferred revenue at the year end | IFRS 15 |
| Software licences | Right-to-use or right-to-access; timing of revenue | IFRS 15 |
| Implementation and set-up fees | Whether they are separate services or part of the subscription | IFRS 15 |
| Development costs | Research expensed; development capitalised only when criteria are met | IAS 38 |
| Employee share options | Cost of options recognised over the vesting period | IFRS 2 |
| Convertible notes and SAFEs | Classification as debt, equity or a derivative | IAS 32 / IFRS 9 |
Choosing an auditor
What Should a Dubai Internet City Company Look For in an Auditor?
The DDA accepts audited financial statements only from audit firms it recognises, and investors expect an auditor who understands technology businesses.
When you appoint an auditor for a DIC company, check that:
- the firm is accepted by the DDA for companies in its free zones;
- the audit partner is a registered auditor with the UAE Ministry of Economy and Tourism;
- the team understands IFRS 15 revenue, capitalised development costs and share-based payments;
- the same audited accounts support your corporate tax return, any QFZP claim and investor reporting.
SGA World audits Dubai Internet City companies and plans the work around the licence renewal date, the corporate tax deadline and funding rounds.
Tax
How Do Corporate Tax and VAT Apply in Dubai Internet City?
Corporate tax. Every DIC company must register for corporate tax. Most IT and consulting services are not qualifying activities, but income from qualifying intellectual property, which includes copyrighted software, can be qualifying income for a Qualifying Free Zone Person. The qualifying share is worked out with the nexus approach, which looks at how much of the development was done by the company itself. Other income is taxed under the standard rules: 0% on the first AED 375,000 of taxable income and 9% above, and audited accounts are a condition of QFZP status.
VAT. DIC is not a designated zone. Software, SaaS and IT services to UAE clients are taxed at 5%; services to clients outside the UAE can be zero-rated when the conditions are met.
See our QFZP guide and transfer pricing services.
Worked example
Example: A SaaS Company Billing Annual Subscriptions
A Dubai Internet City SaaS company bills customers AED 120,000 upfront for a 12-month subscription starting on 1 October.
- Revenue: under IFRS 15, only 3 months (AED 30,000) is revenue in a December year end; AED 90,000 is deferred revenue.
- Development: salaries of engineers building new features may be capitalised only when IAS 38 criteria are met.
- Share options: options granted to staff are an expense under IFRS 2, spread over the vesting period.
- Corporate tax: licence income from copyrighted software developed in-house can be qualifying IP income for a QFZP under the nexus approach.
These adjustments often move reported profit significantly, so they are agreed with the auditor before investor reporting.
What to prepare
What Documents Do We Need for a Dubai Internet City Audit?
Company documents
Dubai Internet City licence, memorandum and articles, and share register.
Accounts
Trial balance, ledgers, bank and payment statements.
Revenue
Subscription data, billing exports and deferred revenue schedules.
Development
Project records and time data for any capitalised costs.
Equity
Cap table, share option plan and investment agreements.
Tax
Corporate tax registration, VAT returns and the chosen tax route.
Fees and timing
How Long Does a Dubai Internet City Audit Take and What Affects the Fee?
For a technology company with organised data, fieldwork usually takes one to three weeks. Start early if a funding round depends on the accounts.
The fee depends on revenue models, deferred revenue volume, capitalised development, share-based payments, convertible instruments and whether corporate tax and IP analysis is included.
How we work
How Does Our Dubai Internet City Audit Process Work?
Step01
Plan
Agree scope and timetable around your DDA renewal date and any funding round.
Step02
Fieldwork
Test revenue contracts, deferred revenue, capitalised costs and share-based payments.
Step03
Report
Agree adjustments and issue the audited IFRS financial statements.
Step04
Submit
Upload on the AXS portal for renewal and use the same figures for your corporate tax return.
Why SGA World
Why Choose SGA World for Dubai Internet City Audit Services?
We check the Dubai Internet City rules first
We confirm the current Dubai Internet City requirements for your licence before planning the audit and tax filings.
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 Dubai Internet City Industries Do We Support?
SaaS and software products
- Subscription and deferred revenue
- Capitalised development costs
- Qualifying IP income
AI, data and cloud
- Usage-based and hybrid pricing
- Cloud and compute costs
- R&D grants and incentives
Fintech and payments
- Client money and settlement balances
- Regulatory capital and reporting
- Transaction-based revenue
IT services and consulting
- Fixed-price and time-and-materials projects
- Unbilled revenue at the year end
- VAT on cross-border services
Regional offices of global tech firms
- Cost-plus service fees
- Transfer pricing documentation
- Group reporting deadlines
Venture-backed start-ups
- SAFEs, convertible notes and ESOPs
- Cash runway reporting
- Small business relief or QFZP
Avoid problems
Common Mistakes Dubai Internet City Companies Make
Booking annual subscriptions as revenue upfront
Overstated revenue under IFRS 15
Capitalising all development costs
Research costs must be expensed
Ignoring the cost of share options
Understated expenses under IFRS 2
Assuming all software income is qualifying
The nexus approach limits qualifying IP income
Zero-rating SaaS sold to UAE clients
VAT assessments and penalties
Leaving the audit until renewal week
DDA licence renewal is delayed
DIC desk
Get Your Dubai Internet City Audit and Tax Done on Time
Tell us your licence renewal date, financial year end and any funding plans. We will plan the audit, accounts and tax filings around them.
We handle
- Annual audit for DDA renewal
- IFRS 15 revenue and deferred revenue
- Corporate tax and qualifying IP review
- VAT on software and IT services
- Transfer pricing and virtual CFO
Location: Dubai
Dubai Office
Our Dubai office in The Exchange Tower, Business Bay serves Dubai Internet City companies and 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 12 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
Dubai Internet City Audit and Accounting – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.Do Dubai Internet City companies need an annual audit?
Yes. DIC companies submit audited financial statements each year through the AXS portal before the DDA renews their licence.
02.Who regulates Dubai Internet City?
The Dubai Development Authority (DDA), which also regulates Dubai Media City and other TECOM districts.
03.Can software income qualify for the 0% corporate tax rate?
Income from qualifying intellectual property, including copyrighted software, can be qualifying income for a Qualifying Free Zone Person. The qualifying share is calculated using the nexus approach.
04.How is SaaS revenue recognised in audited accounts?
Under IFRS 15, subscription revenue is generally recognised over the service period, with amounts billed in advance shown as deferred revenue at the year end.
05.Is VAT charged on software sold from Dubai Internet City?
Yes. DIC is not a designated zone. Software and IT services to UAE clients are taxed at 5%, and services to clients outside the UAE can be zero-rated when the conditions are met.
06.Which services does SGA World provide for Dubai Internet City companies?
Audit, accounting and IFRS reporting, corporate tax and qualifying IP reviews, VAT, transfer pricing and virtual CFO support.
07.How is deferred revenue treated in a SaaS audit?
Amounts billed in advance for future service periods are shown as deferred revenue and recognised over the subscription period under IFRS 15.
08.Do share options affect profit?
Yes. Under IFRS 2, the fair value of share options is recognised as an expense over the vesting period.
09.Are SAFEs and convertible notes debt or equity?
It depends on their terms. They may be liabilities, equity or contain derivatives under IAS 32 and IFRS 9.
10.How long does a Dubai Internet City audit take?
Usually one to three weeks of fieldwork for a company with organised data.
11.Where are DIC audited accounts submitted?
Through the DDA's AXS portal as part of licence renewal.
References:Dubai Development Authority · Federal Tax Authority · UAE Ministry of Finance — reviewed 14 October 2026
