Dubai Airport Freezone (DAFZA) is home to regional headquarters, logistics businesses, aviation suppliers, technology firms and trading companies — many of them part of international groups. These companies need audited financial statements that satisfy DAFZA, the Federal Tax Authority and, often, an overseas parent company at the same time.
VAT Accounting UAE is a DAFZA approved auditor. We deliver audit reports that DAFZA accepts, prepared by a team that also understands corporate tax, VAT and group reporting.
Why DAFZA Companies Need an Approved Auditor
DAFZA requires its registered companies to submit annual audited financial statements, and the audit must be performed by an auditor DAFZA recognises. Submitting a report from a non-approved firm can lead to rejection and delay your licence renewal.
Corporate tax has added a second requirement. A Qualifying Free Zone Person (QFZP) must maintain audited financial statements to benefit from the 0% corporate tax rate on qualifying income. Businesses with revenue above AED 50 million must also prepare audited financial statements under Ministerial Decision No. 82 of 2023. For most DAFZA companies, an audit is now essential to both licensing and tax.
What Our DAFZA Audit Includes
We carry out a full statutory audit under International Standards on Auditing, with financial statements prepared under IFRS. The service covers:
- Risk-based audit planning tailored to your activity — trading, logistics, services or holding.
- Verification of balances — bank, receivables, payables, inventory and fixed assets.
- Inventory and warehouse checks for trading and logistics companies.
- Related-party and intercompany review — common for DAFZA branches and subsidiaries of foreign groups.
- Foreign currency translation checks for multi-currency operations.
- Draft financial statements and disclosure notes for your review.
- Signed audit report ready for DAFZA submission.
- Management letter with control and compliance recommendations.
DAFZA Branches of Foreign Companies
Many DAFZA licences are branches of overseas companies. Branch audits have specific challenges: head office recharges, cost allocations, transfer pricing and reporting to a parent in another currency or framework. We coordinate with your group auditors and head office finance team so the DAFZA audit supports the group reporting timetable rather than holding it up.
For related-party pricing, our transfer pricing documentation service makes sure your intercompany charges meet the arm’s length standard under UAE corporate tax.
Our DAFZA Audit Process
- Scoping call — financial year, entity type (FZE, FZCO or branch), group structure and deadlines.
- Fixed-fee proposal — agreed upfront, with a clear timeline.
- Document request — a simple checklist shared on day one.
- Fieldwork — on-site at your DAFZA office or warehouse where needed, otherwise remote.
- Draft review meeting — we walk you through findings and adjustments.
- Final signed report — issued for DAFZA, the FTA and your group.
If your accounts need work first, our backlog accounting team can close the books before the audit begins.
Documents Required for a DAFZA Audit
- DAFZA licence, certificate of formation and lease agreement
- Memorandum and Articles of Association (or parent company documents for a branch)
- Trial balance and general ledger
- Bank statements and confirmations
- Sales and purchase invoices and major contracts
- Inventory listing and stock count records
- Fixed asset register
- Intercompany agreements and balance confirmations
- Previous audit report and VAT returns
DAFZA Audit and Corporate Tax
Your audited financial statements feed straight into your corporate tax return. We review the points that most often cause problems for DAFZA companies:
- QFZP conditions — adequate substance in DAFZA, qualifying income, and the de minimis limit on non-qualifying revenue. See our Qualifying Free Zone Person guide.
- Mainland transactions — sales into the mainland can affect qualifying income.
- Tax groups — if you have several UAE entities, a corporate tax group may reduce filings (note that QFZPs cannot join a tax group).
Read more on corporate tax for free zone companies and free zone audit requirements.
Get Expert Help for Your Business
Talk to an FTA-approved tax consultant today. Free consultation, no obligation — we’ll tell you exactly what your business needs.
Common DAFZA Audit Issues We Resolve
DAFZA companies often carry more complex balances than a typical SME. These are the issues we see most often — and fix before they delay your report:
- Intercompany balances that don’t agree between the DAFZA entity and its parent or sister companies.
- Head office recharges with no agreement to support them, which also creates transfer pricing risk.
- Inventory held in third-party warehouses without regular stock confirmations.
- Foreign currency balances translated at the wrong rate.
- Mainland sales mixed with free zone sales, which complicates QFZP qualifying income.
- VAT returns that don’t match the ledger — our VAT reconciliation service closes the gap.
Raising these points early keeps fieldwork short and avoids surprise adjustments at the end of the audit. Where a balance cannot be supported, we explain the options clearly, so management decides with the full picture.
Why DAFZA Companies Choose Us
- DAFZA approved — audit reports accepted for submission.
- Accounting, audit and tax under one roof — we also offer full DAFZA accounting services.
- Experience with group structures — branches, subsidiaries and holding entities.
- Fixed fees — see our accounting packages and pricing.
- Close to DAFZA — our office at Al Nasr Plaza, Oud Metha is a short drive from the free zone.
We are also approved auditors for IFZA, DMCC and JAFZA. See all our audit services in the UAE, including external audit and internal audit.
Call +971 52 406 3000 or get your DAFZA audit quote.
Frequently Asked Questions
DAFZA requires registered companies to submit audited financial statements each year. Free zone companies claiming QFZP status for corporate tax must also maintain audited financial statements.
The DAFZA audit report must come from an auditor DAFZA approves. We can coordinate with your group auditor so the local audit supports group reporting.
Branch requirements depend on DAFZA’s rules and your tax position. We review your structure and confirm what is required before quoting.
Most audits take two to four weeks once documents are received. Inventory-heavy or group entities can take longer.
Yes, if it meets the QFZP conditions, including adequate substance, qualifying income, audited financial statements and transfer pricing compliance.
Fees depend on volume, inventory and group complexity. We provide a fixed quote after reviewing your trial balance.