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Frequently Asked Questions
Do all businesses need to register for VAT in the UAE?
No, only businesses with taxable supplies and imports exceeding AED 375,000 per year are required to register for VAT. However, businesses with taxable supplies between AED 187,500 and AED 375,000 can voluntarily register. Registration is mandatory once the threshold is crossed to avoid penalties from the Federal Tax Authority (FTA).
When is a corporate tax return due in the UAE?
Corporate tax returns must be filed within 9 months from the end of the relevant financial year. For example, if your financial year ends on 31 December 2024, your corporate tax return will be due by 30 September 2025.
What’s the difference between internal and external audit?
Internal Audit is conducted by a company’s own team or outsourced auditors to assess internal controls, risks, and operational efficiency. It helps improve processes but is not mandatory by law.
External Audit is conducted by an independent auditor to examine the accuracy of a company’s financial statements. It is required for most UAE businesses for license renewals, bank submissions, and compliance purposes.
Are audit reports mandatory in free zones?
Yes, in most cases. Many UAE free zones such as DMCC, JAFZA, DAFZA, and DIFC require companies to submit audited financial statements annually as part of their license renewal process. Requirements may vary, so it’s important to check with the specific free zone authority.