Annual audit
Statutory audit of your financial statements for licence renewal, investors and corporate tax.
Masdar City Free Zone Approved Auditors: Audit, Accounting and Tax for Masdar Companies
Companies licensed in Masdar City Free Zone, Abu Dhabi, submit audited financial statements each year before licence renewal, signed by an auditor the free zone accepts. Every 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 Masdar City approved audits, accounting, VAT and tax.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
Masdar City at a glance
- Location
- Masdar City, Abu Dhabi
- Focus
- Cleantech, AI, life sciences, technology
- Annual audit
- Before licence renewal
- Corporate tax
- 0% QFZP / 9% standard
- VAT
- 5% standard rules apply
Masdar City Free Zone is a free zone in Abu Dhabi built around sustainability, clean energy and advanced technology, close to Abu Dhabi International Airport. Its companies range from renewable energy and AI firms to life sciences, space technology and consultancies. Each year they submit audited financial statements before licence renewal, and every company deals with UAE corporate tax and VAT.
SGA World provides Masdar City approved audits, together with accounting, bookkeeping, VAT and corporate tax services for Masdar City Free Zone companies, from our branch in Al Bateen, Abu Dhabi and our office in Dubai.
Working across several zones? See our overview of all UAE free zones.
- Free zone next to Abu Dhabi International Airport
- Abu Dhabi
- Audited accounts before licence renewal
- Annual
- Corporate tax for QFZPs and others
- 0% / 9%
- VAT under the normal UAE rules
- 5%
At a glance
Masdar City Free Zone Companies: Key Facts
- Audit: audited financial statements are submitted each year before licence renewal.
- Approved auditor: the audit report must come from an auditor the free zone accepts.
- Corporate tax: every company registers; 0% only for a Qualifying Free Zone Person on qualifying income.
- VAT: Masdar City is not on the designated zone list, so normal VAT rules apply.
- Grants and funding: research grants and investor funding need careful IFRS accounting.
- Records: keep accounting records for 7 years for corporate tax.
Our services
Which Services Do We Provide for Masdar City Companies?
Accounting and IFRS reporting
Monthly books, grant and R&D accounting, and year-end statements.
Corporate tax and QFZP
Registration, QFZP assessment, de minimis testing and the annual return.
VAT
Registration, returns and VAT on services to UAE and overseas clients.
Transfer pricing
IP licences, R&D charges and group services at arm's length.
Virtual CFO
Cash runway, budgets and investor reporting for growing companies.
About the zone
What Is Masdar City Free Zone?
Masdar City is a planned low-carbon community in Abu Dhabi, developed by Masdar, and its free zone licenses companies working in and around clean technology. The free zone authority issues licences for hundreds of activities, with clusters in:
- renewable energy and sustainability;
- artificial intelligence and technology;
- life sciences and healthcare;
- space technology and advanced research;
- consultancy and professional services.
Companies usually set up as a free zone company or as 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 Masdar City Companies Do Every Year?
- Audited financial statements
- Accounts prepared under IFRS, audited and submitted to the free zone 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, under the normal UAE VAT rules.
- Transfer pricing
- Related-party transactions at arm's length, including licences, R&D charges and group services.
- UBO records
- Keep the register of ultimate beneficial owners up to date with the authority.
Approved auditors
Why Does a Masdar City Company Need an Approved Auditor?
Masdar City Free Zone 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 a Masdar City approved auditor, check that:
- the firm is accepted by the Masdar City Free Zone authority;
- the audit partner is a registered auditor with the UAE Ministry of Economy and Tourism;
- the firm understands research grants, intangible assets and investor funding;
- the same audited accounts can be used for your corporate tax return and any QFZP claim.
SGA World audits Masdar 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 Masdar City?
Corporate tax. Every Masdar City 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 and 9% on other taxable income. Qualifying income can include certain qualifying intellectual property income and transactions with other free zone persons, while services to mainland UAE customers are generally non-qualifying and must stay within the lower of 5% of revenue or AED 5 million. Audited accounts are a condition of QFZP status.
VAT. Masdar City Free Zone is not listed as a designated zone in Cabinet Decision No. 59 of 2017, so normal UAE VAT rules apply. Most supplies are taxed at 5%, with zero-rating possible for qualifying exports of services.
See our Accounting Firms in Abu Dhabi guide and QFZP guide.
Worked example
Example: A Masdar City AI Start-Up With a Research Grant
A Masdar City Free Zone start-up develops AI software for energy companies. It receives a government research grant, raises seed funding and sells annual licences to clients in the UAE and abroad.
- Audit: Masdar City requires audited accounts before licence renewal; investors also expect them.
- Grants: under IAS 20, the grant is recognised as the related costs are incurred, not when cash arrives.
- Development costs: research is expensed; development is capitalised only when the IAS 38 criteria are met.
- Corporate tax: licence income from copyrighted software can be qualifying IP income for a QFZP under the nexus approach; consulting income for mainland clients is generally not.
Getting these treatments right affects the audited profit, the tax computation and what investors see.
What to prepare
What Documents Do We Need for a Masdar City Audit?
Company documents
Masdar City Free Zone licence, articles and share register.
Accounts
Trial balance, ledgers and bank statements.
Revenue
Customer contracts, licences and deferred revenue schedules.
Grants and funding
Grant agreements, investor documents and share capital records.
Development costs
Project and time records supporting any capitalised costs.
Tax
Corporate tax registration and QFZP or IP income analysis.
Fees and timing
How Long Does a Masdar City Audit Take and What Affects the Fee?
For a start-up or technology company with organised books, fieldwork usually takes one to three weeks. Start two months before renewal, or earlier if investors need the accounts.
The fee depends on revenue complexity, grants, capitalised development, share-based payments, the state of the books and whether corporate tax work is included.
How we work
How Does Our Masdar City Audit Process Work?
Step01
Plan
Agree scope, timetable and documents, working back from your licence renewal date.
Step02
Fieldwork
Test revenue, grants, capitalised costs, bank balances and related-party transactions.
Step03
Report
Agree adjustments and issue the audited financial statements.
Step04
Submit
Submit for licence renewal and use the same figures for your corporate tax return.
Why SGA World
Why Choose SGA World as Your Masdar City Free Zone Approved Auditor?
Approved audits for Masdar City Free Zone
Audit reports prepared to Masdar City Free Zone 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 Masdar City Industries Do We Support?
Renewable energy and cleantech
- Project costs and long-term contracts
- Equipment, depreciation and impairment
- Group financing and transfer pricing
AI, software and technology
- Subscription and licence revenue under IFRS 15
- Capitalised development costs
- Qualifying IP income for QFZP
Life sciences and healthcare
- Research grants and milestone payments
- Inventory of medical and lab supplies
- Collaboration agreements with related parties
Space and advanced research
- Long-term research contracts
- Government grants and incentives
- Intangible assets and impairment
Sustainability consultancies
- Time-based billing and unbilled revenue
- VAT on services to UAE and overseas clients
- Mainland revenue against the de minimis limit
Avoid problems
Common Mistakes Masdar City Companies Make
Leaving the audit until renewal week
Licence renewal is delayed
Treating grants as income when received
Profit is misstated and can affect corporate tax
Capitalising research costs
Under IFRS, research costs are expensed
Assuming designated zone VAT rules apply
Masdar City follows normal VAT rules
Billing mainland clients without tracking it
Can breach the QFZP de minimis limit
Undocumented IP and R&D charges with the group
Transfer pricing adjustments
Masdar City desk
Get Your Masdar 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 licence renewal
- IFRS accounts, grants and R&D
- Corporate tax and QFZP review
- VAT registration and returns
- Transfer pricing and virtual CFO
Location: Abu Dhabi
Abu Dhabi Office
Our Abu Dhabi branch in Khalidiya Towers, Al Bateen serves Masdar City companies, supported by our Dubai office in Business Bay.
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
Masdar City Free Zone Audit and Accounting – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.Do Masdar City Free Zone companies need an audit?
Yes. Masdar City companies submit audited financial statements each year, before the licence is renewed.
02.Do I need a Masdar City approved auditor?
Yes. The audit report must come from a firm the free zone accepts. SGA World provides Masdar City approved audits.
03.Is Masdar City a designated zone for VAT?
No. Masdar City Free Zone is not on the designated zone list in Cabinet Decision No. 59 of 2017, so normal UAE VAT rules apply.
04.Do Masdar City companies pay corporate tax?
Every Masdar City 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.
05.How should research grants be accounted for?
Under IFRS, government grants are generally recognised in profit or loss as the related costs are incurred, not simply when cash is received. The treatment affects audited profit and corporate tax.
06.Which services does SGA World provide for Masdar City companies?
Audit, accounting and IFRS reporting, corporate tax and QFZP reviews, VAT, transfer pricing and virtual CFO support.
07.How should a Masdar City company account for research grants?
Under IAS 20, grants are generally recognised in profit or loss as the related costs are incurred, not when the cash is received.
08.Can software income qualify for 0% in Masdar City?
Income from qualifying intellectual property, including copyrighted software, can be qualifying income for a QFZP, calculated using the nexus approach.
09.Can development costs be capitalised?
Only development costs that meet the IAS 38 criteria can be capitalised. Research costs are expensed.
10.How long does a Masdar City audit take?
Usually one to three weeks of fieldwork for a company with organised books.
11.Do Masdar City start-ups need to register for corporate tax?
Yes. Every company must register and file a return, even if it is loss-making.
12.Is our Abu Dhabi office near Masdar City?
Our Abu Dhabi branch is in Khalidiya Towers, Al Bateen, serving clients across Abu Dhabi, including Masdar City.
References:Masdar City Free Zone · Federal Tax Authority · UAE Ministry of Finance — reviewed 14 October 2026
