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FAQs

Welcome to our FAQ page, where you'll find answers to common questions about accounting, bookkeeping and financial reporting.

 

  • What is a Free Zone Company?
    • "A Free Zone company is a business established within a designated jurisdiction in Dubai where it enjoys tax exemptions and customs duty benefits."
  • Do Free Zone Companies Pay VAT?
    • "Yes, Free Zone companies are subject to VAT at the standard rate of 5% for taxable goods and services, with specific exemptions depending on the Free Zone."
  • What are the Accounting Requirements for Free Zone Businesses?
    • "Free Zone businesses must maintain accurate financial records for at least five years and comply with the International Financial Reporting Standards (IFRS)."
  • Is an Annual Audit Mandatory for Free Zone Companies?
    • "Yes, most Dubai Free Zones require an annual audit report from an accredited firm to renew their business license."
  • Can Free Zone Companies Trade Directly with the UAE Market?
    • "Free Zone companies can trade with the UAE market through local distributors or agents, subject to a 5% customs duty."
  • What Tax Exemptions are Available for Free Zone Companies?
    • "Free Zone companies benefit from exemptions on corporate tax for a specified period, depending on the Free Zone authority's regulations."
  • How Does Payroll Processing Work in Free Zones?
    • "Free Zone companies must process payroll in compliance with UAE labour laws, including end-of-service gratuity calculations."
  • Can Free Zone Companies Own Property in Dubai?
    • "Ownership regulations vary by  Free Zone; some allow companies to own property, while others may restrict it to leasehold arrangements. Speak to your Free Zone specialist to find out more"
  • What are the Key Steps to Financial Compliance in a Free Zone?
    • "Ensuring VAT registration if applicable, maintaining proper bookkeeping, conducting annual audits, and adhering to the Free Zone's regulatory requirements."
  • How Can a Free Zone Company Benefit from Double Taxation Avoidance Agreements (DTAAs)?
    • "Free Zone companies can benefit from DTAAs to avoid being taxed both in the UAE and their home country, subject to the provisions of the specific agreement."