Dubai · financial free zone
Accounting, tax and audit for DIFC companies
The Dubai International Financial Centre is not a typical free zone. It has its own companies law, its own data protection law and its own financial regulator, the DFSA. At the same time, its companies sit inside the federal corporate tax system like any other.
That means two sets of rules to keep apart: DIFC’s rules on accounts and audit, and the FTA’s rules on tax. Send one free request and get quotes from up to three licensed firms that know both.
How DIFC differs
A financial free zone
DIFC is a financial free zone in Dubai. Financial services firms there are regulated by the Dubai Financial Services Authority (DFSA).
Its own companies law
Accounts and audit for DIFC companies follow DIFC’s own companies law, which includes audit exemptions for small companies. Mainland rules do not decide this.
Its own data protection law
DIFC has its own Data Protection Law (DIFC Law No. 5 of 2020), so the federal Personal Data Protection Law does not apply there.
AML supervised by the DFSA
For anti-money laundering, DIFC firms that are supervised for AML answer to the DFSA, not the Ministry of Economy and Tourism. See AML compliance.
Audit for DIFC companies
Two separate tests decide whether a DIFC company needs an audit:
- The DIFC test
DIFC’s companies law sets when a company must be audited, and when a small company can be exempt. Ask a firm to check your company against the current rules.
- The corporate tax test
Under Ministerial Decision 84 of 2025, every Qualifying Free Zone Person needs audited financial statements, whatever its revenue. So does any taxable person with revenue over AED 50m.
So a small DIFC company that is exempt from audit under DIFC rules may still need audited accounts if it wants QFZP status. The auditor must be licensed by the Ministry of Economy and Tourism. See audit services.
Corporate tax in DIFC
A DIFC company is a Free Zone Person under the federal Corporate Tax Law (Federal Decree-Law No. 47 of 2022). It must register with the FTA, within 3 months of incorporation for companies set up on or after 1 March 2024, and file a return 9 months after each year-end.
The 0% rate on qualifying income is only for a Qualifying Free Zone Person. The conditions are adequate substance in the zone, qualifying income, transfer pricing compliance, no election into the standard regime, audited IFRS statements, and the de minimis test (non-qualifying revenue no more than 5% of total revenue or AED 5m, whichever is lower). Failing one means 9% for that period and the next four.
If your DIFC company is part of a group, transfer pricing needs attention. If related-party transactions exceed AED 40m, a transfer pricing disclosure form is filed with the return. Revenue of AED 200m or more, or membership of a group with revenue of AED 3.15bn or more, brings a Master File and Local File.
More in the Qualifying Free Zone Person guide and the corporate tax guide.
Services DIFC companies ask for
DIFC requests often cover the yearly audit, corporate tax filing with transfer pricing, and outsourced finance through CFO services.
- External auditAudited financial statements by a registered auditor
- Corporate tax registrationRegister on EmaraTax on time
- Corporate tax return filingFinancial statements, tax computation and the return
- Bookkeeping & accountingMonthly books, reconciliations and reports
- VAT registrationThreshold check, application and TRN
- Liquidation & deregistrationClose the company and its tax registrations properly
DIFC accounting: common questions
Does a DIFC company pay UAE corporate tax?
DIFC companies are Free Zone Persons under the federal law. They must register and file, and they pay 0% on qualifying income only if they meet the QFZP conditions.
My company is exempt from audit under DIFC rules. Am I done?
Not for tax, if you want QFZP status. Ministerial Decision 84 of 2025 requires audited statements from every QFZP. A tax agent can confirm what applies to you.
Who supervises AML in DIFC?
The DFSA. In mainland and commercial free zones, the Ministry of Economy and Tourism supervises.
Does the federal data protection law apply in DIFC?
No. DIFC has its own Data Protection Law (DIFC Law No. 5 of 2020).
How are the firms checked?
We ask each firm for its trade licence and, where relevant, its FTA tax agent or Ministry auditor registration.
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