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An audit for a free zone company stops being optional the moment you want the 0% corporate tax rate. The Federal Tax Authority (FTA) says a qualifying free zone person must have audited financial statements. Without them, the 0% rate on qualifying income is not available. Some free zones also want an audited report at renewal or before they raise your visa quota, whatever your tax position.
UAEFreeZoneDirectory.com is an independent directory, not an audit firm. If you ask for a quote, we pass your details to a licensed auditor.
Looking ahead: see Free zone corporate tax 2027.
Who needs audited accounts
| Situation | Audit needed? | Source |
|---|---|---|
| Company claiming qualifying free zone person (QFZP) status | Yes, audited financial statements | FTA free zone person bulletin |
| Fujairah Free Zone licence renewal | Audited financial report listed | Fujairah Free Zone renewal process |
| RAK Maritime City licence renewal | Audited financials listed | RAK Maritime City renewal checklist |
| SHAMS company asking for more than 20 visas | Audited report required | SHAMS terms and FAQ |
| RAKEZ company being liquidated | Audit by the approved liquidator | RAKEZ liquidation service card |
Sources checked .
If your zone is not in the table, that does not mean it never asks. Look at its renewal checklist, or ask the zone directly.
Why the 0% rate depends on the audit
A QFZP pays 0% corporate tax on qualifying income and 9% on taxable income that is not qualifying income. The conditions are set in the Corporate Tax Law, Cabinet Decision No. 100 and a Ministerial Decision. Audited statements are one of them. Fail a condition in a tax period and the company loses QFZP status for that period and the next four tax periods.
So the audit is not a formality you can push to next year. A missed audit can mean five years at the normal rates. If your company would rather not carry that cost, the alternative routes (normal rates, or small business relief for companies that do not claim QFZP status) are covered on our corporate tax registration page. A tax adviser should compare them on your numbers.
What an audit costs
We do not show a price range here. Only one audit firm we read publishes its own fee for free zone audits, and the guide articles we found quote ranges that do not agree with each other. One firm is not a market.
What moves the price:
- Revenue and the number of transactions
- How many bank accounts and currencies you use
- Whether the books are up to date and reconciled when the auditor starts
- Stock, related party transactions or group structures
- How quickly you need the signed report
Ask each firm what its fee covers. A quote for the audit report alone may leave out the corporate tax return, a management letter or a second round of questions if your books need fixing.
The fastest way to a fair quote is to send each firm the same facts: your zone, year end, revenue band, monthly transactions and whether your bookkeeping is current.
Papers the auditor will ask for
- Trade licence and memorandum or articles of association
- General ledger and trial balance for the year
- Bank statements for every account, for the full year
- Sales invoices, supplier bills and major contracts
- Fixed asset register and any loan papers
- VAT returns, if you are registered
- Share register and details of related parties
How the audit works
- Close the books for the financial year and reconcile every bank account.
- Ask your free zone whether it keeps a list of approved auditors, then request quotes.
- Sign an engagement letter that states the fee, the deliverables and the timetable.
- Send the papers above. The auditor tests balances and asks questions.
- Answer the queries and make any adjustments the auditor proposes.
- Receive the signed audited financial statements.
- Use them for your corporate tax return, due within 9 months of the year end, and keep them for renewal.
Mistakes that make audits slow
- Starting the audit with books that were not kept during the year.
- Mixing personal and company spending on one card.
- Booking the auditor in month eight of a nine month deadline.
- Choosing an auditor your zone will not accept.
Get an audit quote
Use the form on this page. Tell us your free zone, financial year end, revenue band and whether you claim QFZP status. A licensed audit firm replies with one fixed fee and a timetable before any work starts. If you plan to close the company instead, read company liquidation in the UAE. For renewal paperwork in general, see free zone licence renewal.
Sources
- FTA basic tax information bulletin for free zone persons (audited statements, 9% on non qualifying income)
- FTA public clarification TAXP010 (QFZP conditions and loss of status)
- https://mof.gov.ae/en/public-finance/tax/corporate-tax/ (return deadline)
- Fujairah Free Zone renewal process (audited report at renewal)
- RAK Maritime City renewal checklist (audited financials at renewal)
- https://shamsfz.ae/terms-and-conditions/ (audited report above 20 visas)
- https://rakez.com/en/service-cards/company-services/liquidation (audit in liquidation)
