Industries We Serve
Accounting, Audit & Corporate Tax for Free Zone & Offshore Companies
Free zone and offshore companies have their own audit, substance and Corporate Tax rules. We help you meet licence renewal requirements, protect 0% Qualifying Free Zone Person status where it applies and keep VAT correct.
Overview
Compliance Support for Free Zone and Offshore Structures
Setting up in a UAE free zone brings real advantages, but it also brings obligations that many owners only discover at renewal time: audited financial statements, Corporate Tax registration, transfer pricing records and substance requirements for the 0% rate.
SAS Partners supports companies in DMCC, JAFZA, DIFC, Dubai South, Sharjah, Ajman, RAK and other free zones, as well as offshore companies and holding structures. We keep your books, audit your accounts and advise on whether your income qualifies for 0% Corporate Tax.
Common Challenges
What Free Zone Companies Need to Get Right
- Annual audit required by most free zone authorities for licence renewal.
- Qualifying Free Zone Person status: understanding which income qualifies for 0% and which is taxed at 9%.
- De minimis limits: non-qualifying revenue above the limit can remove the 0% benefit.
- Substance: having enough staff, assets and activity in the free zone.
- Related-party transactions with mainland or overseas group companies priced at arm’s length.
- VAT on mainland sales and on goods moving into and out of designated zones.
Our Services
How We Support Free Zone & Offshore Companies
- Audit of financial statements for licence renewal and Corporate Tax. Audit Services
- Corporate Tax registration, QFZP assessment and returns. VAT & Corporate Tax
- Transfer pricing documentation for related-party transactions.
- Bookkeeping and management accounts. Accounting & Bookkeeping
- DMCC accounting for commodities and trading companies. DMCC Accounting
- Liquidation and deregistration when a free zone entity closes. Company Liquidation
UAE Tax & Compliance
Key Corporate Tax Rules for Free Zone Companies
- 0% Corporate Tax applies only to the qualifying income of a Qualifying Free Zone Person. Other income is taxed at 9%.
- To qualify, the company must maintain adequate substance in the free zone, earn qualifying income, not elect into the standard regime, comply with transfer pricing rules and prepare audited financial statements.
- De minimis: non-qualifying revenue must not exceed the lower of 5% of total revenue or AED 5 million.
- Losing status: a company that fails a condition loses Qualifying Free Zone Person status for that tax period and the following four.
- Small Business Relief is not available to Qualifying Free Zone Persons.
- E-invoicing: The UAE e-invoicing system becomes mandatory in phases: businesses with annual revenue of AED 50 million or more from 1 January 2027, and all other businesses from 1 July 2027. Each business must appoint an accredited service provider before its deadline.
Who We Work With
Free Zone Businesses We Support
- DMCC commodities, trading and services companies
- JAFZA logistics, distribution and manufacturing companies
- DIFC and ADGM financial and professional services firms
- Sharjah, Ajman, RAK and Fujairah free zone companies
- Offshore and holding companies with UAE operations
FAQ
Frequently Asked Questions
Do free zone companies pay Corporate Tax?
All free zone companies must register. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income. A free zone company that does not qualify is taxed under the standard rules.
Is an audit mandatory for free zone companies?
Most free zone authorities require audited financial statements for licence renewal, and a Qualifying Free Zone Person must prepare audited financial statements to keep the 0% rate.
What is the de minimis rule?
Non-qualifying revenue must stay within the lower of 5% of total revenue or AED 5 million. Above that, the company loses Qualifying Free Zone Person status.
Can you help us review our structure?
Yes. We review your activities, income streams and related-party transactions and tell you where you stand and what needs to change.
Get Started
Talk to Our Experts
Contact our team or call +971 52 544 6773 to book a free consultation.
