Company audit in UAE
Audit is a key tool to ensure the transparency and reliability of a company's financial statements. In the UAE, audit is a mandatory requirement established by law and is aimed at ensuring the company's compliance with international standards and requirements. Conducting an audit helps to increase the confidence of investors, partners and clients, as well as helps to identify possible risks and improve the company's financial management.
Our team is ready to provide you with quality UAE audit services customized to meet the unique needs of your business.
Our team is ready to provide you with quality UAE audit services customized to meet the unique needs of your business.
Company types
1
Offshore company (International Business Company)
As a rule, there is no obligation to file accounts with the UAE state authorities, but keeping the accounting records of the company is mandatory, the period is set depending on the LEZ. The director prepares and submits annual accounts to the shareholders.
As a rule, there is no obligation to file accounts with the UAE state authorities, but keeping the accounting records of the company is mandatory, the period is set depending on the LEZ. The director prepares and submits annual accounts to the shareholders.
2
Onshore company (Free Zone Company)
Companies are required to keep accounting records and prepare financial statements. Auditing and filing of financial statements with government authorities is mandatory (with certain exceptions) in the following emirates: Dubai, Sharjah, Abu Dhabi and Ras al Khaimah.
The freezones of Fujairah, Ajman, Umm al-Qaiwain, have no obligation to audit and file financial statements. However, an audit may be required for a bank or to obtain a tax residency certificate.
Companies are required to keep accounting records and prepare financial statements. Auditing and filing of financial statements with government authorities is mandatory (with certain exceptions) in the following emirates: Dubai, Sharjah, Abu Dhabi and Ras al Khaimah.
The freezones of Fujairah, Ajman, Umm al-Qaiwain, have no obligation to audit and file financial statements. However, an audit may be required for a bank or to obtain a tax residency certificate.
3
Mainland Company
It is mandatory to keep accounting records for at least 5 years, and companies must prepare financial statements and undergo an annual audit. Companies are required to submit accounts and an audit report to the Ministry of Finance or the Ministry of Industry to renew the company's license.
It is mandatory to keep accounting records for at least 5 years, and companies must prepare financial statements and undergo an annual audit. Companies are required to submit accounts and an audit report to the Ministry of Finance or the Ministry of Industry to renew the company's license.
Deadlines for filing financial statements
The first reporting period is usually between 6 and 18 months. Each subsequent one lasts 12 months from the end date of the previous period.
The timeframe for preparing and filing reports depends on the type of company and the Emirate or FEZ in which the company is registered and varies from 3 to 9 months from the end of the reporting period.
The timeframe for preparing and filing reports depends on the type of company and the Emirate or FEZ in which the company is registered and varies from 3 to 9 months from the end of the reporting period.
Income tax
Companies engaged in the oil industry and banking sector are subject to income tax.
Foreign companies operating in oil and gas production, refining and processing are taxed at the rate of about 55% of operating revenue (the rate depends on concession confidential agreements signed with state authorities) Also the regime involves the payment of royalties (12-20%)
Foreign bank branches in the emirates of Abu Dhabi, Dubai, Fujairah, Sharjah pay a tax of 20% of operating profit.
From June 1, 2023 for local companies (mainland companies) will be introduced federal income tax. The rate will be 9%. For companies with profits less than 375,000 AED (100,000 USD) the tax rate will remain zero.
Companies registered in Free Zones are generally not subject to income tax as they are offered tax vacations for 15-50 years.
Foreign companies operating in oil and gas production, refining and processing are taxed at the rate of about 55% of operating revenue (the rate depends on concession confidential agreements signed with state authorities) Also the regime involves the payment of royalties (12-20%)
Foreign bank branches in the emirates of Abu Dhabi, Dubai, Fujairah, Sharjah pay a tax of 20% of operating profit.
From June 1, 2023 for local companies (mainland companies) will be introduced federal income tax. The rate will be 9%. For companies with profits less than 375,000 AED (100,000 USD) the tax rate will remain zero.
Companies registered in Free Zones are generally not subject to income tax as they are offered tax vacations for 15-50 years.
Withholding tax
There is no withholding tax in the UAE.
Taxation of individuals
No income tax is levied on individuals.
Real estate tax
Transfer tax is levied on direct and indirect transfers of real estate in the UAE, payable on sale/purchase, lease and mortgage. The rate of transfer tax depends on the Emirate, in Dubai -4%.
Rental tax (rental tax) is levied when renting out real estate, varies from Emirate to Emirate, for example in Dubai it is 5% for residential and 10% for commercial real estate.
Rental tax (rental tax) is levied when renting out real estate, varies from Emirate to Emirate, for example in Dubai it is 5% for residential and 10% for commercial real estate.
Annual fee
The annual fee for companies is 2,000 AED
Questions about taxes in the UAE
The first reporting period is usually between 6 and 18 months. Each subsequent one lasts 12 months from the end date of the previous period.
The timeframe for preparing and filing reports depends on the type of company and in which Emirate or FEZ the company is registered and varies from 3 to 9 months from the end of the reporting period.
The timeframe for preparing and filing reports depends on the type of company and in which Emirate or FEZ the company is registered and varies from 3 to 9 months from the end of the reporting period.
The standard rate in the UAE is 5%
The threshold for mandatory VAT registration is AED 375,000. Proactive registration is also possible after exceeding the taxable transaction threshold of 187,500 AED. Reporting is done on a quarterly basis.
The threshold for mandatory VAT registration is AED 375,000. Proactive registration is also possible after exceeding the taxable transaction threshold of 187,500 AED. Reporting is done on a quarterly basis.
The rate for UAE nationals is normally 17.5%:
- -12.5% of the remuneration is paid by the employer
- 5% is withheld by the employer from the employee's remuneration
Registration fees may be levied for land and real estate transactions.
There are also excise duties on certain groups of goods, fees in relation to the hotel and tourism business.
There are also excise duties on certain groups of goods, fees in relation to the hotel and tourism business.
There are 99 double tax treaties (DTCs) and 8 tax information exchange agreements (TIEAs).
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