IFZA — Dubai

IFZA Accounting, VAT & Corporate Tax Services

Compliance Support for IFZA-Licensed Companies in Dubai

Most IFZA companies are founder-led consultancies, traders and online businesses. WPAA helps them make the right first-year decisions: when to register for Corporate Tax and VAT, whether Small Business Relief or the free zone regime fits, and how to keep books that will pass an audit later.

About the Authority

International Free Zone Authority

IFZA (International Free Zone Authority) is based at Dubai Silicon Oasis and has become one of the most popular free zones for small and medium businesses and overseas founders, thanks to flexible multi-activity licences and low setup costs.

Because so many IFZA companies are run by one or two founders, compliance problems usually come from timing rather than complexity: a Corporate Tax registration deadline missed in the first months, VAT registered late, or a year of transactions with no accounting system behind them.

Dubai, UAE

Typical IFZA Compliance Cycle

Corporate Tax registration in the first months after licensing
Monthly or quarterly bookkeeping in a cloud ledger
VAT registration once the AED 375,000 threshold is reached
Annual choice between Small Business Relief, QFZP or standard rate
Annual Corporate Tax return within 9 months of year end

Corporate Tax

Small Business Relief, QFZP or Standard Rate: Choosing for an IFZA Company

IFZA companies have three possible Corporate Tax outcomes. The cheapest-looking option is not always the right one, and some choices exclude others.

Small Business Relief is elected, not automatic

If revenue is AED 3 million or less, you can elect relief in the return and be treated as having no taxable income. It is available for tax periods ending on or before 31 December 2026.

QFZPs cannot use Small Business Relief

A company that is a Qualifying Free Zone Person cannot also elect Small Business Relief, so you need to decide which route applies each year.

Consultancy income is rarely qualifying

Advisory, marketing and IT services to mainland or overseas clients are not listed Qualifying Activities, which means most service-based IFZA companies cannot rely on the 0% free zone rate.

Losses behave differently

Losses incurred in a Small Business Relief year cannot be carried forward. If you expect early losses and later profits, the standard regime may protect more value.

	Small Business Relief	Qualifying Free Zone Person	Standard regime
Who it suits	Small IFZA companies with revenue up to AED 3m	Companies earning mainly qualifying income with real substance	Everyone else, including most service businesses
Tax result	Treated as no taxable income	0% on qualifying income, 9% on taxable non-qualifying income	0% up to AED 375,000 of taxable income, 9% above
Audited accounts	Not required by the relief itself	Mandatory	Required if revenue exceeds AED 50m
Main catch	Losses from relief years are lost; ends after 2026 periods	Failing a condition removes status for 5 tax periods	Higher tax, but full use of losses and deductions

Simplified summary for general guidance. Thresholds and conditions are set by the UAE Corporate Tax Law and related Ministerial Decisions and should be confirmed for your tax period.

Compliance Calendar

Your First 12 Months With an IFZA Licence

The order of these steps matters more than the paperwork itself. Late registration penalties are the most common avoidable cost we see.

Week 1
Open a business bank account, set up Zoho Books or QuickBooks and agree a chart of accounts that separates each licensed activity.
Within 3 months of licence issue
Register for Corporate Tax with the FTA. Companies incorporated from March 2024 onwards generally have three months from incorporation, and late registration carries an AED 10,000 penalty.
When revenue nears AED 375,000
Apply for VAT registration within 30 days of crossing the mandatory threshold, or register voluntarily from AED 187,500 if it helps recover input VAT.
Every quarter after VAT registration
File VAT returns and pay within 28 days of each period end, keeping export evidence for overseas clients.
Financial year end
Close the books, prepare financial statements and arrange an audit if your bank, IFZA renewal, QFZP claim or revenue level requires one.
Within 9 months of year end
File the Corporate Tax return, electing Small Business Relief if it is the better option for that year.

Services

Simple, Fixed-Scope Support for IFZA Founders

Corporate Tax Registration & Returns

FTA registration on time, annual returns, and a yearly comparison of Small Business Relief against the standard and free zone regimes.

Founder-Friendly Bookkeeping

Monthly or quarterly bookkeeping in a cloud ledger, with bank feeds and receipt capture so you are not chasing documents at year end.

Backlog Clean-Up

Rebuilding a year or more of missing records from bank statements and invoices so you can file, renew or raise finance.

VAT Registration & Filing

Threshold monitoring, registration, quarterly returns and export-of-services documentation for overseas clients.

Audit When You Need It

Audited financial statements for IFZA renewal, bank facilities, visa quota increases or a Qualifying Free Zone Person claim.

E-Commerce Reconciliation

Amazon, Noon and Shopify payouts reconciled to gross sales, fees and refunds so revenue and VAT are reported correctly.

Common Pain Points

Where IFZA Companies Need Help

What we fix most often for IFZA companies in their first two years.

Missed Corporate Tax registration

Founders assume a free zone company has nothing to register. The FTA disagrees, and the AED 10,000 late registration penalty is applied automatically.

No books until the bank asks

A year of transactions with no ledger means a costly clean-up before audit, account reviews or the first Corporate Tax return.

Export of services without evidence

Consultants zero-rate invoices to overseas clients but cannot show the client is outside the UAE or that the service was not used here.

Personal and business spending mixed

Founder expenses run through the company card without support, which weakens deductions and slows any audit.

Sectors

Sectors We Serve in IFZA

Consulting & Professional Services

Trading & General Trading

E-Commerce & Digital Retail

Marketing & Creative Agencies

Technology & IT Services

Holding & Management Entities

FAQs

IFZA Audit, VAT & Corporate Tax Questions

Is audit mandatory for IFZA companies?

Check IFZA's current renewal requirements for your licence. Separately, audited accounts are mandatory under Corporate Tax rules if you claim Qualifying Free Zone Person status or your revenue exceeds AED 50 million, and banks often ask for them.

Should my IFZA company claim Small Business Relief?

If revenue is AED 3 million or less and you do not expect to use tax losses, relief is often the simplest option. It must be elected in each return, is not available to Qualifying Free Zone Persons and applies only to periods ending by 31 December 2026.

Can IFZA consultancies qualify for 0% Corporate Tax as a QFZP?

Usually not. Advisory and professional services to mainland or overseas clients are not listed Qualifying Activities. Group activities such as headquarter services or holding shares can be different, so we review the structure case by case.

When does my IFZA company need to register for Corporate Tax?

All IFZA companies must register, even if they expect to pay no tax. Newly incorporated companies generally have three months from incorporation; missing the deadline results in an AED 10,000 penalty.

When does my IFZA company need to register for VAT?

Registration is mandatory once taxable supplies exceed AED 375,000 in the past 12 months or are expected to in the next 30 days. Voluntary registration is possible from AED 187,500.