Guides · audit
Audit and financial statements
UAE free zone companies may need audited financial statements for corporate tax compliance and licence renewal. Qualifying Free Zone Persons (QFZPs) must audit regardless of revenue. Other free zone companies must audit if revenue exceeds AED 50 million or if their specific free zone authority requires it for licence renewal. Deadlines vary by zone, typically 3–6 months after the financial year end. Corporate tax returns are due 9 months after year end. Non-compliance can lead to loss of QFZP status, fines, and licence renewal blocks.
Dates that carry a penalty
Corporate Tax return and payment9 months after the end of the Tax Periodsource
DAFZA, SAIF Zone, Hamriyah Free Zone audit submission (reported)31 March 2026 (approx. 90 days after 31 Dec 2025 year end)source
Dubai Silicon Oasis (DSO) audit submission (reported)30 April 2026 (4 months after year end)source
Dubai Development Authority zones (DIC, DMC, etc.) audit submission (reported)30 May 2026source
RAKEZ audit submission30 June 2026 (6 months after year end)source
ADGM public companies audit filing30 June 2026 (6 months after year end)source
DMCC extended FY2025 audit window (reported)27 September 2026source
ADGM private companies audit filing30 September 2026 (9 months after year end)source
JAFZA audit submission deadlineNot specified; guides quote both 90 days and 6 months, confirm with authoritysource
Who it applies to
Qualifying Free Zone Persons (QFZPs) under UAE Corporate Tax Law
Free zone companies with annual revenue exceeding AED 50 million
Companies in free zones that mandate audited financial statements for licence renewal (e.g., DMCC, JAFZA, DAFZA, RAKEZ, and many others)
Any free zone company that the authority requests to submit audited statements (e.g., DWTCA)
The rules that decide it
QFZPs must prepare and maintain audited financial statements every tax period, regardless of revenuesource
Ministerial Decision No. 84 of 2025 requires all QFZPs to have audited financial statements. This applies even if revenue is below AED 50 million. mof.gov.ae and assets.adgm.com
Non-QFZP free zone persons must audit if revenue exceeds AED 50 millionsource
Under Article 54 of the Corporate Tax Law, a Taxable Person (not a Tax Group) with revenue > AED 50,000,000 must prepare audited financial statements. mof.gov.ae
Many free zones require audited financial statements for licence renewal, independent of tax statussource
Zones like DMCC, JAFZA, DAFZA, RAKEZ, and others mandate submission of audited financials as a condition for licence renewal. paci.ae
Auditor must be approved by the relevant free zone authoritysource
Each free zone maintains a list of approved auditors. For example, JAFZA requires an auditor with a Dubai Economic Department license. jafza.ae
Financial year must be between 6 and 18 monthssource
JAFZA specifies that the period covered by the audit report should not be less than 6 months and not more than 18 months. jafza.ae
Corporate Tax return and payment due within 9 months of year endsource
The FTA requires submission of the Tax Return and payment of any Corporate Tax due within 9 months of the end of the Tax Period. tax.gov.ae
Thresholds and rates
QFZP de minimis non-qualifying revenue thresholdsource
Lower of AED 5,000,000 or 5% of total Revenue
Revenue threshold for mandatory audit (non-QFZP)source
AED 50,000,000
JAFZA audit report submission fee (within free zone)source
AED 10 (official)
JAFZA audit report submission fee (outside free zone)source
AED 20 (official)
DWTCA fine for failing to furnish audited statements upon requestsource
Up to AED 5,000 (official)
RAKEZ late filing finesource
AED 2,500 (agent reported)
Corporate Tax late filing penalty (first 12 months)source
AED 500 per month
Corporate Tax late filing penalty (after 12 months)source
AED 1,000 per month
Corporate Tax late payment interestsource
14% per year, calculated monthly
Corporate Tax records not kept penalty (first offence)source
AED 10,000
Corporate Tax records not kept penalty (repeat offence)source
AED 20,000
Penalties
QFZP without audited financial statementssource
not published
Licence renewal blocked for missing auditsource
not published
RAKEZ late filing finesource
not yet confirmed
ADGM late filing penaltiessource
not published
Corporate Tax late filing (first 12 months)source
not yet confirmed
Corporate Tax late filing (after 12 months)source
not yet confirmed
Corporate Tax late payment interestsource
not published
Corporate Tax records not kept (first offence)source
not yet confirmed
Corporate Tax records not kept (repeat offence)source
not yet confirmed
DWTCA failure to furnish audited statements upon requestsource
not yet confirmed
Step by step
Step 1source
Appoint an auditor approved by the free zone authority and pass a board resolution
Step 2source
Auditor prepares the audit report and summary sheet, stamped and signed
Step 3source
Log in to the free zone portal (e.g., Dubai Trade for JAFZA)
Step 4source
Navigate to Registration > Submit Financial Statement – Approval and create a new request
Step 5source
Submit the request; courier will collect original audit report and summary sheet from your registered address
Step 6source
Authority verifies records and closes the service request
Common mistakes
Using an auditor not on the free zone's approved list, leading to rejection.
Missing the licence renewal deadline because audit was not completed in time.
Not signing the summary sheet or audit report with company stamp and manager signature.
Assuming that small companies are exempt from audit; QFZPs must audit regardless of revenue.
Confusing the Corporate Tax audit requirement with the free zone licence renewal audit requirement.
Failing to maintain audited financial statements for the required retention period (e.g., 7 years for RAK ICC).
Free zone specifics
DMCC: Audit required for most licence types; deadline reported as 180 days, with FY2025 window extended to 27 Sept 2026; auditor must be DMCC approved; renewal blocked until filed. paci.ae source
JAFZA: Audit is a renewal condition; auditor must have Dubai Economic Department license; submission via Dubai Trade portal; fee AED 10–20; deadline not officially fixed, confirm with authority. jafza.ae source
DAFZA: Audit required; reported deadline 90 days; auditor must be DAFZA approved; renewal refused and portal services suspended if missing. paci.ae source
Dubai South: Audit required at renewal; auditor must be on Dubai South list; renewal on hold if missing. paci.ae source
IFZA: Audited statements required above size limits; simplified statements for small companies; auditor must be IFZA approved; renewal not processed without. paci.ae source
Meydan Free Zone: Audited statements or Meydan's declaration form required; auditor must be Meydan approved; renewal not processed. paci.ae source
Dubai Silicon Oasis (DIEZ): Audit required; reported deadline 4 months; auditor must be DSOA approved; penalties and renewal delay. paci.ae source
Dubai Internet City, Dubai Media City, other DDA zones: Audit required for FZ LLCs and branches; reported deadline 30 May 2026 for 31 Dec 2025 year end; auditor on DDA list; renewal complications if missing. paci.ae source
DIFC: Audit required unless small private company exemption applies; auditor must be DIFC registered; fines under DIFC rules. paci.ae source
ADGM: Audit required unless small company regime applies; private companies 9 months, public companies 6 months; auditor must be ADGM registered; late filing penalties rise with months overdue. assets.adgm.com source
KEZAD (including former KIZAD): Audit reported as required; deadline and auditor confirm with authority. paci.ae source
Abu Dhabi Airports Free Zone, twofour54, Masdar City Free Zone: Audit reported as required; details confirm with authority. paci.ae source
SHAMS (Sharjah Media City): Audit required for renewal; auditor must be authority approved; renewal refused if missing. paci.ae source
SAIF Zone: Audit required; reported deadline 90 days; auditor must be SAIF Zone registered; fines and non-renewal. paci.ae source
Hamriyah Free Zone: Audit required; reported deadline 90 days; auditor must be HFZA approved; renewal blocked. paci.ae source
SPC Free Zone: Audit required for renewal; details confirm with authority; renewal refused if missing. paci.ae source
RAKEZ: Audit required for all licensees since FY2019; deadline 6 months; auditor must be RAKEZ approved; reported fine AED 2,500 and possible suspension. paci.ae source
RAK ICC: No statutory audit required; accounting records kept 7 years; audit only needed if claiming QFZP status. paci.ae source
Ajman Free Zone, UAQ Free Trade Zone, Fujairah Free Zone: Audit requirements not confirmed; contact the authority. paci.ae source
DWTCA: Registrar may request audited financial statements; company must furnish within 60 days; failure leads to fine up to AED 5,000 and possible licence suspension. media.dwtc.com source
Questions the guide answers
Do all free zone companies need audited financial statements?
No. Only Qualifying Free Zone Persons (QFZPs) must audit regardless of revenue. Other free zone companies need audited statements if their revenue exceeds AED 50 million or if their specific free zone authority requires it for licence renewal. Many zones like DMCC, JAFZA, and RAKEZ mandate it for all licensees.
What happens if I don't submit audited financial statements?
For QFZPs, you lose the 0% Corporate Tax rate and pay 9% for that period and the next four. For licence renewal, the authority will not process your renewal, blocking visas and establishment cards. You may also face fines, such as AED 2,500 in RAKEZ or up to AED 5,000 in DWTCA.
Who can audit my free zone company?
The auditor must be registered with or approved by your specific free zone authority. Each zone publishes a list of approved auditors. For example, JAFZA requires an auditor licensed by the Dubai Economic Department.
When is the audit deadline?
It varies by zone. Many require submission within 3–6 months after the financial year end. For Corporate Tax, the return and payment are due 9 months after year end. Check your zone's portal for exact dates.
Can I use the same audit for both licence renewal and Corporate Tax?
Yes, if the financial statements are prepared under IFRS and audited by an approved auditor, they can serve both purposes. However, ensure the audit covers the correct period and meets both the zone's and FTA's requirements.
What the research does not settle
- Exact audit submission deadlines for many free zones (e.g., JAFZA, DMCC, DAFZA) are not officially published; the dates in this guide are from an agent compilation and should be confirmed with the authority.
- Specific fines for late audit submission in most free zones are not publicly available; only RAKEZ (AED 2,500) and DWTCA (up to AED 5,000) are reported.
- Auditor approval lists for each free zone are not included; founders must check the respective authority's website.
- Processing times for audit report verification are not provided by most authorities.
- The exact documentation format (summary sheet, etc.) may vary by zone; only JAFZA's process is detailed here.
- For free zones like Ajman, UAQ, Fujairah, audit requirements are not confirmed; founders should contact the authority directly.
Sources
Annual Accounts Guidance (Version 2.0, 2026)https://assets.adgm.com/download/assets/20260921+ADGM+Annual+Accounts+Guidance+2.pdf/30a374e65ada11ef92bcda675695d30eread 2026-10-20
DATED 30 July 2024https://media.dwtc.com/Circular-No-15-Dated-30-July-2024.pdfread 2026-10-20
mof.gov.aehttps://mof.gov.ae/wp-content/uploads/2025/04/Ministerial-Decision-No.-84-of-2025-on-Audited-Financial-Statements.pdfread 2026-10-20
Free Zone Audit Requirements UAE 2026: By Zone | Pacihttps://paci.ae/blogs/free-zone-audit-requirements-by-zone-uae/read 2026-10-20
Tax Returnshttps://tax.gov.ae/Datafolder/Files/Guides/CT/CT-Returns-EN-11-11-2024.pdfread 2026-10-20
Free Zone Personshttps://tax.gov.ae/Datafolder/Files/Guides/CT/Free%20Zone%20Persons%20-%2020%2005%202024%20final%20for%20GCD.pdfread 2026-10-20
Audit Report Submission (FZE & FZCO) | Jebel Ali Free Zone (Jafza)https://www.jafza.ae/resource-centre/guides/audit-report-submission-fze-fzco/read 2026-10-20