Annual audit
Statutory audit of your IFRS financial statements for DDA licence renewal, banks and corporate tax.
Dubai Media City Audit Services: Audit, Accounting and Tax for DMC Companies
Dubai Media City (DMC) companies are licensed by the Dubai Development Authority (DDA) and submit audited IFRS financial statements each year, through the AXS portal, before licence renewal. Every DMC company registers for UAE corporate tax, where 0% applies only to a Qualifying Free Zone Person, and for VAT once supplies pass AED 375,000. SGA World provides audit, accounting, VAT and tax for DMC companies.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
Dubai Media City at a glance
- Regulator
- Dubai Development Authority (DDA)
- Company types
- FZ-LLC, branch
- Annual audit
- Before licence renewal, via AXS
- Accounts
- IFRS
- Corporate tax
- 0% QFZP / 9% standard
Dubai Media City (DMC) is Dubai's free zone for media, marketing, advertising, publishing and broadcasting companies, part of the TECOM business districts and regulated by the Dubai Development Authority (DDA). DMC companies submit audited financial statements each year before their licence is renewed, and every company deals with UAE corporate tax and VAT.
SGA World provides audit, accounting, bookkeeping, VAT and corporate tax services for Dubai Media City companies, from agencies and production houses to regional offices of international media groups, from our office in Business Bay, Dubai.
Working across several zones? See our overview of all UAE free zones.
- Licenses and regulates Dubai Media City companies
- DDA
- Audited IFRS accounts before licence renewal
- Annual
- Corporate tax for QFZPs and others
- 0% / 9%
- VAT under the normal UAE rules
- 5%
At a glance
Dubai Media City Companies: Key Facts
- Regulator: the Dubai Development Authority (DDA) licenses DMC companies, mostly as FZ-LLCs.
- Audit: audited financial statements are submitted through the AXS portal before licence renewal.
- Accounts: prepared under IFRS, as DDA rules require recognised accounting standards.
- Corporate tax: every company registers; 0% only for a Qualifying Free Zone Person on qualifying income.
- VAT: DMC is not a designated zone; most media and marketing services are taxed at 5%.
- Records: keep accounting records for 7 years for corporate tax.
Our services
Which Services Do We Provide for Dubai Media City Companies?
Bookkeeping and accounting
Monthly books, project accounting, reconciliations and year-end statements.
Corporate tax
Registration, QFZP or small business relief, and the annual return.
VAT
Registration, returns and VAT on cross-border media and marketing services.
Transfer pricing
Group fees, licences and owner payments at arm's length.
Payroll
Monthly payroll, gratuity and leave for creative and production teams.
About the zone
What Is Dubai Media City?
Dubai Media City sits next to Dubai Internet City and is home to regional offices of global broadcasters, publishers and agencies, as well as many local start-ups and freelancers. It is regulated by the Dubai Development Authority (DDA), which also oversees other TECOM districts such as Dubai Internet City and Dubai Studio City.
DMC companies work in:
- advertising, marketing and PR;
- digital media, content and social media;
- publishing and broadcasting;
- film, events and production.
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.
Compliance
What Must Dubai Media City Companies Do Every Year?
- Audited financial statements
- Accounts prepared under IFRS, audited and uploaded on the AXS portal 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, with correct VAT on services to UAE and overseas clients.
- Transfer pricing
- Related-party transactions at arm's length, including group fees and owner payments.
- UBO records
- Keep the register of ultimate beneficial owners up to date with the DDA.
Choosing an auditor
What Should a Dubai Media City Company Look For in an Auditor?
The DDA accepts audited financial statements only from audit firms it recognises. A report from a firm it does not accept can be rejected at licence renewal, which means a second audit and a delayed licence.
When you appoint an auditor for a DMC 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 firm understands project revenue, agency fees and pass-through costs common in media and marketing;
- the same audited accounts can be used for your corporate tax return and any QFZP claim.
SGA World audits Dubai Media City companies and plans the work around the licence renewal date and the corporate tax deadline.
Tax
How Do Corporate Tax and VAT Apply in Dubai Media City?
Corporate tax. Every DMC company must register for corporate tax. Most media and marketing services are not on the list of qualifying activities for the 0% rate, so many DMC companies rely on transactions with other free zone persons or foreign clients for qualifying income, or pay tax under the standard rules: 0% on the first AED 375,000 of taxable income and 9% above. A Qualifying Free Zone Person must keep non-qualifying revenue within the lower of 5% of revenue or AED 5 million. Smaller resident companies with revenue up to AED 3 million may elect small business relief instead, but not if they are a QFZP.
VAT. DMC is not a designated zone. Media, advertising and marketing 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 corporate tax services and VAT services.
Worked example
Example: A Dubai Media City Agency Buying Media for Clients
A Dubai Media City advertising agency plans campaigns and buys AED 6 million of media for clients, earning a 12% fee.
- Revenue: if the agency acts as agent, revenue under IFRS 15 is the fee (about AED 720,000), not the full media spend. If it acts as principal, gross revenue is reported.
- Audit: the auditor reviews client contracts to support the judgement, because it changes revenue, margins and bank covenants.
- Corporate tax: advertising services are not a qualifying activity, so the agency pays tax under the standard rules on profit above AED 375,000.
- VAT: fees and recharged media to UAE clients are taxed at 5%; services to foreign clients may be zero-rated.
Agreeing the principal-or-agent position early avoids audit adjustments late in the year.
What to prepare
What Documents Do We Need for a Dubai Media City Audit?
Company documents
Dubai Media City licence, memorandum and articles, and share register.
Accounts
Trial balance, ledgers, bank and payment statements.
Client contracts
Agency agreements, statements of work and media orders.
Project records
Production costs, timesheets and unbilled work.
Suppliers
Media owner invoices, rebates and freelancer contracts.
Tax
Corporate tax registration, VAT returns and the chosen tax route.
Fees and timing
How Long Does a Dubai Media City Audit Take and What Affects the Fee?
Typical fieldwork is one to three weeks. Start two months before your DDA licence renewal.
The fee depends on revenue models (retainers, projects, media buying), unbilled work, the number of clients and suppliers, related parties and whether corporate tax work is included.
How we work
How Does Our Dubai Media City Audit Process Work?
Step01
Plan
Agree scope, timetable and documents, working back from your DDA licence renewal date.
Step02
Fieldwork
Test project revenue, unbilled work, client balances and related-party charges.
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 Media City Audit Services?
We check the Dubai Media City rules first
We confirm the current Dubai Media 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 Media City Industries Do We Support?
Advertising and media buying
- Principal or agent under IFRS 15
- Media pass-through costs and rebates
- VAT on cross-border campaigns
Digital marketing and social media
- Retainers and performance fees
- Influencer and platform costs
- Unbilled revenue at the year end
Publishing and broadcasting
- Subscription and advertising revenue
- Content rights and amortisation
- Group charges and transfer pricing
Film, video and event production
- Project costing and work in progress
- Equipment and depreciation
- Freelancer and crew payments
PR and communications
- Time-based billing
- Owner pay and connected-person rules
- Small business relief or QFZP
Avoid problems
Common Mistakes Dubai Media City Companies Make
Leaving the audit until renewal week
DDA licence renewal is delayed
Booking media spend as revenue
Overstated revenue under IFRS 15
Assuming media services qualify for 0%
Most are not qualifying activities
Zero-rating services to UAE clients
VAT assessments and penalties
No year-end unbilled revenue review
Profit is misstated
Undocumented group fees
Transfer pricing adjustments
DMC desk
Get Your Dubai Media City 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 DDA renewal
- IFRS accounts and project accounting
- Corporate tax and QFZP review
- VAT on media and marketing services
- Transfer pricing and payroll
Location: Dubai
Dubai Office
Our Dubai office in The Exchange Tower, Business Bay serves Dubai Media 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 Media City Audit and Accounting – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.Do Dubai Media City companies need an annual audit?
Yes. DMC companies submit audited financial statements each year through the AXS portal before the DDA renews their licence.
02.Who regulates Dubai Media City?
The Dubai Development Authority (DDA), which also regulates other TECOM districts such as Dubai Internet City and Dubai Studio City.
03.Which auditor can a Dubai Media City company use?
An audit firm the DDA accepts, with an audit partner registered with the UAE Ministry of Economy and Tourism. SGA World audits Dubai Media City companies.
04.Can a Dubai Media City company pay 0% corporate tax?
Only if it is a Qualifying Free Zone Person with qualifying income. Most media and marketing services are not qualifying activities, so many DMC companies pay 0% up to AED 375,000 and 9% above.
05.Is VAT charged on services from Dubai Media City?
Yes. DMC is not a designated zone. 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 Media City companies?
Audit, bookkeeping and accounting, corporate tax, VAT, transfer pricing and payroll.
07.Is media buying revenue reported gross or net?
It depends on whether the agency acts as principal or agent under IFRS 15. An agent reports only its fee; a principal reports the full amount.
08.Do Dubai Media City freelancers need an audit?
DDA licence renewal generally requires audited accounts for companies. Freelance permit holders should confirm their own obligations with the DDA.
09.Can a Dubai Media City company use small business relief?
Yes, if it is a resident company with revenue up to AED 3 million and does not claim QFZP status.
10.How long does a Dubai Media City audit take?
Usually one to three weeks of fieldwork once the books are closed.
11.Where are DMC 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
