Compliance Audit for Free Zone Companies

Compliance Audit Services for Free Zone Companies in UAE

Many businesses in UAE free zones assume that simply holding a free zone license guarantees them a 0% corporate tax rate. In reality, the exemption is not automatic. To qualify as a “Qualifying Free Zone Person” under the UAE Corporate Tax Law, companies must meet strict conditions relating to substance, income sources, and audited financials.

This is where a Compliance Audit becomes critical. At Accruon Auditing LLC, we help free zone businesses validate their eligibility for 0% corporate tax through detailed compliance audits.

What is a Compliance Audit?

A compliance audit is an independent review that checks whether a company is meeting the legal, regulatory, and tax-related requirements set by the UAE Ministry of Finance, Federal Tax Authority (FTA), and Free Zone Authorities.

For free zone entities, this audit goes beyond financial statements — it confirms whether the company:

Meets substance requirements (employees, assets, expenses).
Generates qualifying income under the law.
Stays within the de-minimis limit for non-qualifying income.
Maintains audited financial statements.
Properly discloses and documents corporate tax compliance.

Why is a Compliance Audit Important for Free Zone Companies?

1. To Secure the 0% Corporate Tax Exemption

The UAE Corporate Tax Law (Article 18 and related ministerial decisions) makes it clear that only qualifying free zone persons enjoy the 0% rate. A compliance audit ensures you meet all conditions.

2. To Avoid Penalties & Reassessments

If the FTA determines that your company is non-compliant, you may lose exemption and face a 9% tax rate plus fines. A compliance audit helps avoid this risk.

3. To Monitor Qualifying vs Non-Qualifying Income

Businesses dealing with mainland customers or end-users often risk exceeding the de-minimis rule (5% or AED 5 million). A compliance audit tracks and documents this carefully.

4. To Strengthen Corporate Governance

Regular audits enhance transparency, accountability, and investor confidence, especially for businesses dealing internationally.

5. To Prepare for FTA or Free Zone Authority Reviews

Authorities may request evidence of compliance at any time. A completed compliance audit positions your company to respond confidently.

Our Compliance Audit Services for Free Zone Companies

At Accruon Auditing LLC, our compliance audits are structured to cover all critical areas:

Substance Review – Checking if your company has adequate operations, staff, and expenses in the UAE.
Income Analysis – Segregating qualifying and non-qualifying revenues.
De-Minimis Testing – Ensuring non-qualifying income remains within permitted thresholds.
Audit of Financial Statements – Preparing and certifying financials as required by the law.
Documentation & Evidence Index – Contracts, invoices, bills of lading, TP records, etc.
Advisory & Corrective Actions – Highlighting gaps and providing solutions for ongoing compliance.

Why Choose Accruon Auditing LLC?

Government-recognized audit firm in UAE
Specialized in free zone compliance and corporate tax audits
In-depth knowledge of UAE CT Law, Articles 18 & 34–55
Proven expertise in compliance audits for exporters, traders, and service providers
Client-focused, ensuring you remain eligible for 0% tax exemption

Stay Compliant. Stay Exempt.

A compliance audit is not just a regulatory requirement — it is a business safeguard. By partnering with Accruon Auditing LLC, free zone companies can confidently claim their 0% corporate tax benefits while avoiding penalties and maintaining strong governance.