Accounting for freezone companies
DMCC, JAFZA, DAFZA, DSO, IFZA, SHAMS, CommerCity — every zone has its own audit rules, and corporate tax added a whole new layer. We keep freezone entities compliant and, where possible, at 0%.
Freezone issues we handle
- Qualifying Free Zone Person (0%) assessments and revenue mapping
- Mandatory audited financials for licence renewal deadlines
- Corporate tax registration and filing for freezone entities
- VAT on designated zones vs regular freezones — goods vs services
- Substance requirements: what 'adequate' actually looks like
- Mainland revenue creeping past the de minimis limit unnoticed
Zero percent is a discipline, not a default
The 0% freezone rate survives only if every condition holds all year: substance, audit, qualifying activities and the de minimis cap on non-qualifying revenue. We monitor these monthly — because discovering in December that mainland sales crossed 5% is discovering it a year too late.
We also run the compliance calendar per zone: audit submission deadlines, licence renewals and ESR/CT filings tracked together, so nothing collides.
FAQs
Do freezone companies need audited accounts?
Most major zones — DMCC, JAFZA, DAFZA and others — require audited financial statements for licence renewal, and all Qualifying Free Zone Persons must maintain audited accounts under corporate tax rules.
Is VAT different in freezones?
Only 'designated zones' get special VAT treatment, and only for goods — services follow normal rules everywhere. Treating a regular freezone as VAT-free is a common and expensive mistake.
Can a freezone company sell to the mainland?
Often yes, depending on licence and activity — but mainland revenue is generally non-qualifying income for corporate tax, so it must stay within the de minimis limits to preserve QFZP status.
Which freezones do you work with?
We serve clients across Dubai and northern emirates zones — including DMCC, DSO, Dubai CommerCity, IFZA and SHAMS — plus mainland entities in the same group.
Run the numbers with people who know your industry
Free consultation. Bring your latest P&L — or your shoebox of invoices. Both are fine.