Free zone audits
Annual audits to each zone's requirements, including approved audits where the zone requires them.
Free Zone Company Audit, Accounting and Corporate Tax in the UAE: Every Free Zone, One Team
UAE free zone companies must keep proper accounts, meet their zone's audit rules, register for corporate tax and, to pay 0%, meet every Qualifying Free Zone Person condition, including audited accounts and the de minimis limit. Some zones are VAT designated zones. SGA World audits and advises free zone companies in DMCC, JAFZA, DAFZA, DIFC, ADGM and every other UAE free zone.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
Free zone companies at a glance
- Audit
- Required by most zones and for QFZP
- Corporate tax
- 0% QFZP / 9% standard
- De minimis
- Lower of 5% or AED 5m
- VAT
- Designated zone rules for goods
- Coverage
- Every UAE free zone
The UAE has more than 40 free zones, each with its own licensing authority and rules. What every free zone company has in common is a set of obligations: proper accounts, the zone's audit rules, corporate tax registration and returns, VAT, and beneficial ownership records. Since corporate tax, the question that matters most is whether the company can be a Qualifying Free Zone Person (QFZP) and pay 0% on qualifying income.
SGA World provides free zone company audit, accounting and corporate tax services across the UAE. Below you will find our guides for each free zone, and how we help companies keep their 0% position safe.
- Free zones across the seven emirates
- 40+
- Corporate tax for Qualifying Free Zone Persons
- 0%
- De minimis limit, or AED 5 million if lower
- 5%
- Some zones have special VAT rules for goods
- Designated
At a glance
Free Zone Company Audit and Accounting: Key Points
- Audit: most zones require audited accounts at licence renewal; some only for QFZP, banks or on request.
- Corporate tax: every free zone company must register and file a return within 9 months of the year end.
- QFZP: 0% on qualifying income needs substance, qualifying income, the de minimis test, audited accounts and transfer pricing compliance.
- De minimis: non-qualifying revenue must not exceed the lower of 5% of revenue or AED 5 million.
- Penalty for failing: a company that fails a condition loses QFZP status for that year and the next four tax periods.
- VAT: designated zones can treat some goods movements as outside the scope of VAT; services are taxed normally.
Our services
Which Services Do We Provide for Free Zone Companies?
QFZP reviews
Annual checks of substance, qualifying income and the de minimis test.
Accounting
Bookkeeping with revenue tagged by customer type for the QFZP test.
Designated zone VAT
Goods movements between zones and to the mainland.
Transfer pricing
Related-party pricing, a QFZP condition.
UBO and AML
Beneficial ownership records and AML where relevant.
Key rules
What Are the Key Rules for UAE Free Zone Companies?
| Area | Rule | What it means for you |
|---|---|---|
| QFZP rate | 0% on qualifying income | Only if every condition is met for the whole period. |
| Other income | 9% | Non-qualifying income is taxed at the standard rate. |
| De minimis | Lower of 5% of revenue or AED 5 million | Track customer type on every invoice. |
| Audit | Audited accounts required for QFZP | Even where the zone itself does not require an audit. |
| Small business relief | Not available to a QFZP | Choose one route each period. |
| VAT | Designated zone rules for goods | Services taxed normally at 5%. |
How we work
How Do We Work With Free Zone Companies?
Step01
Confirm the zone rules
Audit, renewal and filing requirements for your zone and licence.
Step02
Choose the tax route
QFZP, small business relief or standard rates.
Step03
Set up the books
Revenue tagged by customer type and activity.
Step04
Audit
Audited accounts for the zone, banks and the FTA.
Step05
File
Corporate tax return with QFZP workings, and VAT returns.
Why SGA World
Why Choose SGA World for Free Zone Company Audit and Accounting?
Every zone, one team
One firm for companies in several free zones, with consistent audits 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.
Dubai free zones
Which Dubai Free Zones Do We Cover?
- DMCC: commodities, trading and services hub in Jumeirah Lakes Towers.
- JAFZA: trading, logistics and manufacturing at Jebel Ali Port.
- DAFZA: air cargo and trading next to Dubai International Airport.
- DIFC: financial centre with its own law and regulator.
- DWTC: events, services and corporate offices.
- Dubai Silicon Oasis and IFZA: technology, services and IFZA companies.
- Dubai South: logistics and aviation around Al Maktoum airport.
- Meydan: start-ups, consultants and e-commerce.
- Dubai Media City and Dubai Internet City: media and technology under the DDA.
- DIAC: education providers.
Abu Dhabi and northern emirates
Which Other UAE Free Zones Do We Cover?
Abu Dhabi: ADGM, Masdar City, ADAFZ, twofour54, ICAD and Khalifa Port Free Trade Zone.
Sharjah: SAIF Zone, Hamriyah Free Zone and SHAMS.
Northern emirates: RAKEZ, Ajman Free Zone, Fujairah Free Zone and UAQ Free Trade Zone.
Each guide explains that zone's audit rules, corporate tax and VAT position, and common mistakes.
Worked example
Example: A Group With Companies in Three Free Zones
A family group owns a DMCC trading company, a JAFZA logistics company and a Meydan consultancy.
- Audits: DMCC and JAFZA require audited accounts; Meydan does not generally, so the consultancy is audited only if it claims QFZP.
- Tax routes: the DMCC and JAFZA companies claim QFZP, tracking qualifying income; the consultancy, with mostly mainland clients, elects small business relief.
- Related parties: charges between the three companies are priced at arm's length, a QFZP condition.
- VAT: JAFZA is a designated zone; goods moved between JAFZA and DMCC need checking against the designated zone rules.
One team handles all three, with one timetable and consistent figures.
What to prepare
What Do We Need to Review a Free Zone Company?
Licence
Free zone licence, activities and constitutional documents.
Accounts
Trial balance and latest financial statements.
Revenue
Sales by customer type: free zone, foreign, mainland reseller or end user.
Substance
Staff, premises and where decisions are made.
Related parties
Group structure and intercompany agreements.
Tax
Corporate tax registration and VAT returns.
Fees and timing
What Affects the Cost of Free Zone Audits and Tax?
Fees depend on the zone's requirements, revenue and transaction volume, inventory, related parties, whether a QFZP analysis is needed and how many entities we handle. Groups with several free zone companies benefit from one coordinated engagement and timetable.
Avoid problems
Common Free Zone Company Mistakes
Assuming free zone means 0% tax
QFZP conditions must all be met
Not tracking customer type
De minimis cannot be proven
No audit because the zone does not require one
QFZP still needs audited accounts
Electing small business relief as a QFZP
Not allowed
Undocumented group charges
Transfer pricing and QFZP risks
Thinking every zone is a designated zone
VAT errors on goods
Talk to us
Keep Your Free Zone Company Compliant and Your 0% Safe
Tell us about your business and what you need. We will propose a clear scope and a fixed fee.
We handle
- Free zone audits
- QFZP reviews
- Accounting by customer type
- Designated zone VAT
- Transfer pricing
Location: Dubai & Abu Dhabi
Talk to Our Team
Our offices in Business Bay, Dubai and Al Bateen, Abu Dhabi support clients 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 14 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
Free Zone Company Audit and Accounting – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.Do all free zone companies pay 0% corporate tax?
No. Only Qualifying Free Zone Persons pay 0%, and only on qualifying income. Others pay 9% above AED 375,000.
02.What is the de minimis rule?
Non-qualifying revenue must not exceed the lower of 5% of total revenue or AED 5 million in a tax period.
03.What happens if a QFZP fails a condition?
It loses QFZP status for that tax period and the following four tax periods.
04.Do all free zones require an audit?
Most do at licence renewal, but some, such as Meydan and UAQ FTZ, reportedly do not. A QFZP needs audited accounts regardless.
05.Which free zones are VAT designated zones?
Zones listed in Cabinet Decision No. 59 of 2017, such as JAFZA, DAFZA, SAIF Zone, Hamriyah, Ajman Free Zone and Fujairah Free Zone. Many others, such as Dubai Silicon Oasis, Meydan and ADGM, are not.
06.Can a free zone company sell to the mainland?
Yes, usually through permits, branches or distributors. Mainland income generally affects the QFZP de minimis test.
07.Can a free zone company use small business relief?
A resident free zone company with revenue up to AED 3 million can elect it, but not if it is a QFZP.
08.Do free zone companies need transfer pricing documentation?
Related-party transactions must be at arm's length for QFZP status, with documentation and disclosures where required.
09.Can you audit companies in several free zones?
Yes. We work across Dubai, Abu Dhabi, Sharjah and the northern emirates.
10.Which free zones are SGA World approved for?
Our free zone guides show where we provide approved audits, including DMCC, JAFZA, DAFZA, DIFC, ADGM, DSO, DWTC, SAIF Zone and Masdar City.
References:Federal Tax Authority · UAE Ministry of Finance — reviewed 14 October 2026
