Dubai · federal tax rules
Accounting, tax and audit for Dubai South companies
If your company is licensed in Dubai South, the federal tax rules are the same as for any other free-zone company. What you file with the Federal Tax Authority depends on your revenue and on whether you claim the 0% free-zone rate.
We keep this page short because we only publish rules we can source. For the zone’s own renewal requirements, ask Dubai South or the firms that quote. One free request reaches up to three licensed firms.
What applies to every Dubai South company
- Corporate tax registration with the FTA through EmaraTax, within 3 months of incorporation for companies set up on or after 1 March 2024.
- A yearly corporate tax return, due 9 months after year-end, and records kept for 7 years.
- VAT registration once taxable supplies and imports pass AED 375,000 over 12 months.
- E-invoicing for B2B and B2G sales: revenue under AED 50m appoints an accredited service provider by 31 March 2027 and goes live on 1 July 2027.
When an audit is needed
- Qualifying Free Zone Persons
Every QFZP must have audited IFRS financial statements (Ministerial Decision 84 of 2025).
- Revenue over AED 50m
Audited statements are required for corporate tax.
The audit must be signed by an auditor licensed by the Ministry of Economy and Tourism. Ask Dubai South whether it also needs accounts at renewal. See audit services.
The 0% rate and its conditions
A Dubai South company pays 0% on qualifying income only as a Qualifying Free Zone Person. The conditions include adequate substance in the zone, audited IFRS statements, transfer pricing compliance, 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.
Without QFZP status, the normal rates apply: 0% on taxable income up to AED 375,000 and 9% above it. Read the Qualifying Free Zone Person guide.
Services Dubai South companies ask for
Most requests are for corporate tax registration, bookkeeping and corporate tax filing.
- 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
Dubai South: common questions
Are the tax rules different in Dubai South?
Corporate tax, VAT and e-invoicing are federal, so the same FTA rules apply as in other free zones. The zone’s own licence rules are separate.
When is my first corporate tax return due?
9 months after the end of your first tax period. For a 31 December year-end, that is 30 September of the next year.
Is the request free?
Yes. Up to three licensed firms send quotes, and you are not obliged to choose one.
Does e-invoicing apply to a free-zone company?
E-invoicing covers B2B and B2G transactions, and businesses selling only to consumers are excluded for now. Check the e-invoicing timeline and ask a firm whether you are in scope.
Get quotes for your Dubai South company
One short form. Up to three licensed firms. Free, no obligation.