Audit required for a UAE FZ company to have 0% CIT

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lacomaco

Mentor Group Gold
Rowena drew my atention to the consultation document of the MInFin of the UAE, which says:
Whether the financial statements of a business are required to be audited by an accredited audit firm is and will continue to be determined by applicable company laws and regulations. However, the UAE CT regime will require a Free Zone Person to have audited financial statements if it wants to benefit from the 0% CT regime.

I understand that is is just a consultation doc, and regulations will apply only after June 2023, but it is a very conservative guess that there are at least 10,000 FZ companies in the UAE without audit requirements so far. Where would they find enough auditors to do this job?
 

Fred

Dubai Expat
Mentor Group Gold
Elite Member
Commercial Service
Entrepreneur
Written law and enforcement in reality are 2 pair of shoes at least outside the EU!

Time will tell but like said when you look actually on the VAT and the soft launch on it for Freezones basically since the very beginning - you can already guess.

We prepare ourselves to provide our existing clients a potential basic audit to keep the 0% if really required at no additional cost.
 

JackAlabama

Entrepreneur
Rowena drew my atention to the consultation document of the MInFin of the UAE, which says:
Whether the financial statements of a business are required to be audited by an accredited audit firm is and will continue to be determined by applicable company laws and regulations. However, the UAE CT regime will require a Free Zone Person to have audited financial statements if it wants to benefit from the 0% CT regime.

I understand that is is just a consultation doc, and regulations will apply only after June 2023, but it is a very conservative guess that there are at least 10,000 FZ companies in the UAE without audit requirements so far. Where would they find enough auditors to do this job?
Actually from 01.01.2024 if your tax year is december. So you have another 18months left. This is written in that magic doc which will change with a pretty high prob.
 
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