Audit and cost verification
Statutory audits and audit support for production rebates, grants and investors.
twofour54 Audit Services: Audit, Accounting and Tax for Abu Dhabi Media and Gaming Companies
twofour54 is Abu Dhabi's free zone for media, entertainment and gaming companies. Every twofour54 company keeps proper accounts and registers for UAE corporate tax; an audit is required for corporate tax if it claims Qualifying Free Zone Person status or has revenue above AED 50 million, and is often needed for production rebates, banks and investors. SGA World provides twofour54 audits, accounting, VAT and tax.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
twofour54 at a glance
- Location
- Abu Dhabi, including Yas Island
- Focus
- Media, film, gaming, content, events
- Audit for QFZP
- Required
- VAT
- 5% standard rules apply
- Corporate tax
- 0% QFZP / 9% standard
twofour54 is Abu Dhabi's free zone for media, entertainment and gaming, home to broadcasters, production houses, game studios, content creators and agencies. Every twofour54 company must keep proper accounts and deal with UAE corporate tax and VAT, and many also need an annual audit, whether for corporate tax, for production incentives or for investors.
SGA World provides audit, accounting, bookkeeping, VAT and corporate tax services for twofour54 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 for media, film, gaming and content
- Media
- Audited accounts required to claim 0%
- QFZP
- Key standard for project and content revenue
- IFRS 15
- VAT under the normal UAE rules
- 5%
At a glance
twofour54 Companies: Key Facts
- Corporate tax: every twofour54 company registers and files a return within 9 months of the year end.
- Audit for tax: required if the company claims QFZP status or revenue exceeds AED 50 million.
- Licence renewal: confirm with twofour54 whether audited accounts are needed for your licence type.
- Incentives: production rebates and grants usually need verified costs and careful IFRS accounting.
- Qualifying income: most media and production services are not qualifying activities for the 0% rate.
- VAT: twofour54 is not a designated zone; services to UAE clients are taxed at 5%.
Our services
Which Services Do We Provide for twofour54 Companies?
Production accounting
Project ledgers, cost reports, reconciliations and year-end statements.
Corporate tax
Registration, QFZP or small business relief, and the annual return.
VAT
VAT on production, licensing and cross-border media services.
Transfer pricing
Content licences, group services and co-production charges at arm's length.
Payroll
Payroll for staff, crew and freelancers, with gratuity and leave.
About the zone
What Is twofour54?
twofour54 is Abu Dhabi's media and entertainment free zone, named after the city's geographic coordinates. It offers licences, offices and production facilities, with a large creative campus on Yas Island.
It is home to:
- broadcasters and publishers;
- film, TV and video production companies;
- gaming and esports studios;
- content creators, influencers and digital agencies;
- events, music and entertainment businesses.
Companies can set up as a free zone company or a branch of a UAE or foreign company, and freelancers can work under a freelance permit. Whatever the structure, the business must keep proper records and meet its tax obligations.
Do you need an audit?
Does a twofour54 Company Need an Audit?
| Your situation | Audit needed? | Why |
|---|---|---|
| Claiming the 0% QFZP rate | Yes | Audited financial statements are a condition of QFZP status. |
| Revenue above AED 50 million | Yes | Required for corporate tax. |
| Claiming a production rebate or grant | Usually | Incentive schemes typically require costs to be verified by an auditor. |
| Licence renewal | Check | Confirm the current requirement for your licence type with twofour54. |
| Investors, banks or broadcasters | Usually | They typically ask for audited accounts. |
| Small company using small business relief | Not for tax | No corporate tax audit requirement, but records must still be kept. |
We confirm the current requirement for each client before planning the year end.
Choosing an auditor
What Should a twofour54 Company Look For in an Auditor?
When you appoint an auditor for a twofour54 company, check that:
- the audit partner is a registered auditor with the UAE Ministry of Economy and Tourism;
- the firm is accepted for any filing twofour54 or an incentive scheme requires;
- the team understands production costing, content rights, rebates and gaming revenue;
- the same audited accounts can be used for your corporate tax return, any QFZP claim and investor reporting.
SGA World audits twofour54 companies and plans the work around production timelines, incentive claims and the corporate tax deadline.
Tax
How Do Corporate Tax and VAT Apply in twofour54?
Corporate tax. Every twofour54 company must register for corporate tax. Most media, production and agency services are not on the list of qualifying activities for the 0% rate, so many twofour54 companies 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.
Rebates and grants. Production rebates and other government incentives are usually accounted for under IAS 20, matched to the costs they cover. How they are recorded affects both the audited profit and the corporate tax computation.
VAT. twofour54 is not a designated zone. Production, licensing and media 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 Accounting Firms in Abu Dhabi guide and corporate tax services.
Worked example
Example: A Film Production Claiming a Rebate
A twofour54 production company shoots a series in Abu Dhabi with a budget of AED 8 million and applies for a production rebate.
- Cost report: costs are coded by production and category from day one, so the rebate claim and audit can be prepared quickly.
- Rebate accounting: under IAS 20, the expected rebate is recognised as the related costs are incurred, once there is reasonable assurance it will be received.
- Revenue: licence fees from broadcasters are recognised when the content is delivered and available to the licensee, under IFRS 15.
- Corporate tax: production services are generally not qualifying activities, so profit above AED 375,000 is taxed at 9%.
Clean production accounting protects both the rebate and the tax position.
What to prepare
What Documents Do We Need for a twofour54 Audit?
Company documents
twofour54 licence, memorandum and articles, and share register.
Accounts
Trial balance, ledgers, bank statements and confirmations.
Production records
Budgets, cost reports, crew contracts and supplier invoices by production.
Revenue
Broadcaster, distributor and licensing agreements.
Incentives
Rebate and grant applications, approvals and correspondence.
Tax
Corporate tax registration, VAT returns and the chosen tax route.
Fees and timing
How Long Does a twofour54 Audit Take and What Affects the Fee?
Fieldwork usually takes one to three weeks once the books are closed. Plan it at least two months before any licence renewal or bank deadline, and well inside the corporate tax filing date.
The fee depends on the number of productions or projects, rebate claims, content rights, freelancer volume, the condition of the books and whether corporate tax work is included. We confirm a fixed fee after reviewing your trial balance.
How we work
How Does Our twofour54 Audit and Tax Process Work?
Step01
Assess
Confirm whether you need an audit, an incentive cost report or both.
Step02
Books
Bring project ledgers up to date and reconcile bank, revenue and costs.
Step03
Audit
Audit the financial statements or verify production costs, and agree adjustments.
Step04
File
Meet any twofour54 or incentive filing and file the corporate tax return.
Why SGA World
Why Choose SGA World for twofour54 Audit Services?
We check the twofour54 rules first
We confirm the current twofour54 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 twofour54 Industries Do We Support?
Film, TV and video production
- Production cost reports and rebate claims
- Work in progress and project margins
- Crew and freelancer payments
Gaming and esports
- In-game purchases and platform revenue
- Capitalised game development costs
- Prize money, sponsorships and events
Broadcasting and publishing
- Advertising and subscription revenue
- Content rights and amortisation
- Group charges and transfer pricing
Content creators and digital agencies
- Brand deals and platform income
- Principal or agent under IFRS 15
- VAT on cross-border services
Events, music and entertainment
- Ticketing and sponsorship revenue
- Deferred income for future events
- Artist and venue costs
Avoid problems
Common Mistakes twofour54 Companies Make
Mixing costs from different productions
Rebate claims and audits take much longer
Booking a rebate as income when claimed
Profit is misstated under IAS 20
Assuming media services qualify for 0%
Most are not qualifying activities
Capitalising all game development costs
Research costs must be expensed
Zero-rating services to UAE clients
VAT assessments and penalties
Paying freelancers without contracts
Weak evidence for costs and payroll
twofour54 desk
Get Your twofour54 Audit and Tax Done on Time
Tell us your activity, revenue, any incentive claims and your financial year end. We will tell you what you need and plan it.
We handle
- Audits and production cost verification
- Production and project accounting
- Corporate tax and QFZP review
- VAT on media services
- Transfer pricing and payroll
Location: Abu Dhabi
Abu Dhabi Office
Our Abu Dhabi branch in Khalidiya Towers, Al Bateen serves twofour54 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 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
twofour54 Audit and Accounting – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.Do twofour54 companies need an audit?
An audit is required for corporate tax if the company claims Qualifying Free Zone Person status or has revenue above AED 50 million. Production incentives, investors and banks often require one too, and the licence renewal requirement should be confirmed with twofour54 for your licence type.
02.Can a twofour54 company pay 0% corporate tax?
Only if it is a Qualifying Free Zone Person with qualifying income. Most media and production services are not qualifying activities, so many twofour54 companies pay 0% up to AED 375,000 and 9% above.
03.How are production rebates accounted for?
Usually under IAS 20 as government grants, recognised in profit or loss in line with the production costs they cover rather than simply when the claim is made or paid.
04.Is twofour54 a designated zone for VAT?
No. twofour54 is not on the designated zone list, so normal UAE VAT rules apply. Services to UAE clients are taxed at 5%.
05.Which services does SGA World provide for twofour54 companies?
Audits and production cost verification, production accounting, corporate tax, VAT, transfer pricing and payroll.
06.Do twofour54 freelancers need corporate tax registration?
Freelancers working under a permit should check whether they are carrying on a business in their own name; companies must register for corporate tax.
07.How are content rights accounted for?
Acquired or produced content rights are usually recognised as assets and amortised over the period of expected benefit, and tested for impairment.
08.How long does a twofour54 audit take?
Usually one to three weeks of fieldwork, depending on the number of productions.
09.Can gaming income qualify for 0% corporate tax?
Some income from qualifying intellectual property can be qualifying under the nexus approach; most other gaming and media services are not.
References:twofour54 · Federal Tax Authority · UAE Ministry of Finance — reviewed 14 October 2026
