QFZP Audit & IFRS Reporting for Free Zone Companies in the UAE
Check whether your Free Zone company is ready for QFZP requirements: audited financial statements, IFRS / IFRS for SMEs, qualifying income, substance and Corporate Tax filing.
Three quick questions — we’ll show which risk areas are worth a detailed check.
No email or call needed. Result shown instantly on screen.
Qualifying Free Zone Person (QFZP) is a UAE Corporate Tax regime under which a Free Zone company applies a 0% rate to Qualifying Income, provided it meets five conditions at the same time: qualifying income is present; adequate substance is maintained in the Free Zone; the de minimis requirement is met (non-qualifying income does not exceed 5% of revenue or AED 5 million — whichever is lower); audited financial statements are prepared (mandatory for all QFZP entities from tax periods beginning on or after 1 January 2025, Ministerial Decision No. 84 of 2025); and transfer pricing requirements are satisfied. Free Zone registration alone does not grant 0%. If QFZP status is lost, the 9% rate (Federal Decree-Law No. 47 of 2022) applies to all taxable income from the period of breach and for the following four periods. The audit itself is carried out by independent accredited auditors (licensed by the UAE Ministry of Economy); BGA only prepares audit-ready documentation and coordinates the process, without promising a guaranteed 0% status.
A Free Zone does not mean automatic 0% Corporate Tax
A Free Zone company does not get 0% Corporate Tax automatically. The 0% rate can apply to Qualifying Income only if the QFZP conditions are met. For a Qualifying Free Zone Person, preparing and retaining audited financial statements is a separate Corporate Tax requirement. If QFZP status is lost, under UAE Corporate Tax rules the 9% rate applies to all taxable income from the start of the period of breach and for the following four periods (five tax periods in total) — so it is important to close off risk areas in advance.
Who should check their QFZP risks
If even one point applies to your company, there are areas worth checking before Corporate Tax filing or audit.
Free Zone company planning to apply the 0% Corporate Tax rate
Has mainland clients or mixed revenue
Trading, distribution or service activity
Has related-party transactions
Low-revenue or dormant company relying on QFZP
Audited financial statements are not ready yet
What we check
The review map covers QFZP conditions and reporting readiness — what the auditor and tax authority typically ask about.
What we prepare
Two work streams: putting your reporting in order and preparing the company for QFZP review.
Reporting & accounting
- IFRS / IFRS for SMEs financial statements
- Audit-ready file for the auditor
- Reconciliation of bank statements, invoices, contracts
- Period closing and accounting cleanup
QFZP readiness
- QFZP document checklist
- Preliminary QFZP risk map
- Coordination with the auditor
- Corporate Tax filing support
What documents you’ll need
You don’t need the full list right away — we start with what you have and request more as the review progresses.
How the work proceeds: from risk review
to an audit-ready file
The sequence of steps is the same for everyone. Timelines depend on the state of your records and volume of transactions — discussed individually, with no guaranteed deadlines.
Initial QFZP risk call
A short conversation: we go through the company structure and outline the risk areas to review.
Express document review
We look at what’s already available and build a preliminary QFZP risk map.
Accounting cleanup, if needed
We close periods, reconcile transactions and put the accounting records in order.
IFRS statements and audit-ready file
We prepare IFRS / IFRS for SMEs statements and assemble the file for the auditor.
Auditor coordination and CT filing support
We coordinate with the auditor and support Corporate Tax filing preparation.
Support packages
Three tiers — from a quick risk check to full support. Scope is tailored to your situation.
QFZP Risk Check
For companies that need to quickly understand which QFZP risks are worth checking before filing or audit.
- Initial risk call
- Risk area map
- Document checklist
- Recommendations for next steps
IFRS + Audit-ready
For companies that need to prepare financial statements, put their accounting records in order and hand the auditor a complete document package.
- Everything in Risk Check
- IFRS / IFRS for SMEs financial statements
- Accounting cleanup
- Audit-ready file and reconciliations
- Coordination with the auditor
Full QFZP Compliance Support
For companies with mixed revenue, mainland clients, related parties or a complex transaction structure.
- Everything in IFRS + Audit-ready
- Qualifying income breakdown
- Transfer pricing review
- Support through to CT filing
- Support with auditor requests
There is no fixed price: it depends on the state of your records, transaction volume and company structure. No guarantees on tax outcomes.
We work closely with auditors
We prepare the package the way an independent auditor expects and coordinate the process — the audit itself is performed by a licensed party.
Focused on Free Zone and Corporate Tax
We specialize in accounting and reporting for UAE Free Zone companies and Corporate Tax preparation.
Careful with your documents
We request only what’s needed for the review and handle your data confidentially.
Preparing reporting for companies across UAE Free Zones
Zone names are shown for reference. Specific requirements depend on your Free Zone, activity type and transaction structure — we review these individually.
The essentials, in brief
Answers to the questions Free Zone company owners ask most often.
Five conditions of a Qualifying Free Zone Person
The 0% rate applies only if all conditions are met at the same time. We check each one against your company’s documents.
Don’t wait for an auditor’s request or the Corporate Tax filing deadline
Check your QFZP risks now and find out which documents you need to prepare.
The information on this page is general in nature and does not constitute individual tax, legal or audit advice. QFZP status and the application of 0% Corporate Tax depend on the company’s actual activity, income structure, documentation, the tax regime chosen, and the applicable UAE Corporate Tax rules. A final determination should be made only after reviewing the company’s documents.