Accounting, tax and audit for free zone companies
A free zone licence does not take a company out of corporate tax. Every free zone company must register, and the 0% rate only applies to a Qualifying Free Zone Person that meets a list of conditions, including audited accounts.
Choose your free zone to see what its authority asks for, then get quotes from firms that work with companies there.
Choose your free zone
Corporate tax for free zone companies
All taxable persons, including free zone persons, must register for corporate tax. A Qualifying Free Zone Person (QFZP) pays 0% on qualifying income and 9% on non-qualifying income.
- Keep adequate substance in the free zone.
- Earn qualifying income and not elect to be taxed under the standard regime.
- Comply with the transfer pricing rules.
- Pass the de minimis test: non-qualifying revenue of no more than 5% of total revenue or AED 5 million, whichever is lower.
- Prepare audited financial statements under IFRS.
A company that fails a condition is taxed at 9% for that tax period and the next four. Read more in our Qualifying Free Zone Person guide.
Audited accounts
Every QFZP needs audited financial statements for corporate tax, whatever its revenue (Ministerial Decision 84 of 2025). Many free zone authorities also ask for audited accounts from an approved auditor to renew the licence. DMCC, for example, only accepts accounts audited by a firm on its Approved Auditor List.
New for 2026: a QFZP that distributes goods in or from a Designated Zone needs an Agreed-Upon Procedures report from an independent auditor, for tax periods starting on or after 1 January 2026 (FTA Decision 6 of 2026).
Auditors must be licensed by the Ministry of Economy and Tourism. See our audit page and the guide to audited financial statements.
VAT and e-invoicing
VAT registration follows the federal thresholds: mandatory once taxable supplies and imports pass AED 375,000 in 12 months, voluntary from AED 187,500. A tax agent can check how VAT applies to your free zone activities. See VAT registration.
E-invoicing covers B2B and B2G transactions. Businesses with revenue of AED 50 million or more go live on 1 January 2027; the rest must appoint an Accredited Service Provider by 31 March 2027 and go live on 1 July 2027. See e-invoicing.
Get quotes for your free zone company
Tell us your free zone and the services you need. Up to three licensed firms will contact you.