UAE FZ small business relief - CT filing - audit?

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oldfactoryambition

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Aug 20, 2023
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Hi everyone,

I want to start with a FZ, but realised there were some changes to the last time I checked around 2021-2022.
Got three questions but even after a lengthy search I couldnt find a good answer to them. Even contacted a service which forms FZs and they couldnt give a straight answer.
  1. Can anyone apply to the small business relief? Even new businesses? Is it easy to get it or is there a lengthy verification process to it?
  2. CT filing is mandatory for profit over 375k AED, even with small business relief. What cost is associated with it when done by someone? Can it be done on my own?
  3. Are audits mandatory and if so what costs are associated with it?
Thank you art:!"
 
Bump. Another day of research.

For 1: It looks like everyone can apply for it, no matter if you create your company today, yesterday or in a year, for now.

I couldnt find any information about 2 and 3. I saw accounting services but they include reports which I dont need and charge around 500-1500€ per month which is a scam.
 
Hello There!

  1. Can anyone apply to the small business relief? Even new businesses? Is it easy to get it or is there a lengthy verification process to it? - Yes, everyone can apply
  2. CT filing is mandatory for profit over 375k AED, even with small business relief. What cost is associated with it when done by someone? Can it be done on my own? - We advise to wait with this until more information is released.
  3. Are audits mandatory and if so what costs are associated with it? - Same as in question Nr. 2


Thanks,
 
oldfactoryambition said:
oldfactoryambition said:
Hi everyone,

I want to start with a FZ, but realised there were some changes to the last time I checked around 2021-2022.
Got three questions but even after a lengthy search I couldnt find a good answer to them. Even contacted a service which forms FZs and they couldnt give a straight answer.
  1. Can anyone apply to the small business relief? Even new businesses? Is it easy to get it or is there a lengthy verification process to it?
  2. CT filing is mandatory for profit over 375k AED, even with small business relief. What cost is associated with it when done by someone? Can it be done on my own?
  3. Are audits mandatory and if so what costs are associated with it?
Thank you art:!"
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Hey,

1. The company will have to apply for small business relief only when it does its first tax filing, i.e. generally in 2025 (for the year 2024). Conditions for small business relief are announced, but no one will tell you what the process will look like exactly because it will come with the first tax filing. Small business relief will be applicable also for new companies. If you just now set up a company, please keep in mind, that it will become subject to tax from the incorporation moment (e.g. October 2023), but not from 1st January 2024 (as companies established before 1st June 2023).

2. CIT registration is already open and mandatory for all companies, as well as CIT filling.

3. Audit will be mandatory from 2024, but there are exemptions. All decent service providers should be able to explain this.

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audit is not mandatory for companies claiming small business relief, at least it was not last time I checked.
can you show a source?

audit is mandatory in case of qualifying companies that remain 0% tax
 
We have a non-qualifying FZCO with revenue around $200k that was required by DIEZ to do an audit last month.
 
MankouJoe said:
MankouJoe said:
Just out of the blue, email from DIEZ. It was an offsite inspection.
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We also got hit with this vip treatment in the exact same way as you (email sent to GM), but no financial statement audit has been requested tho.
These seem to be happening quite a lot lately. Ive heard from quite a bunch having had the same pleasure recently.
 
That's strange, it was non-negotiable when I asked. Anyway, not a huge problem. Just required some back and forth with the accountant.

Did you receive any feedback?
 
If you are opting for SBR, you are likely a non-qualifying FZCO.
Is there any benefit to being a FZCO rather than a mainland company?
 
MankouJoe said:
MankouJoe said:
That's strange, it was non-negotiable when I asked. Anyway, not a huge problem. Just required some back and forth with the accountant.
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it was not on the long list of requirements. Just financials have been asked.
MankouJoe said:
MankouJoe said:
Did you receive any feedback?
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No 😉
It seems we had the opportunity of a pretty short vip treatment.

They will only come back to you if your vip treatment is not finished yet.
 
JackAlabama said:
JackAlabama said:
it was not on the long list of requirements. Just financials have been asked.

No 😉
It seems we had the opportunity of a pretty short vip treatment.

They will only come back to you if your vip treatment is not finished yet.
Click to expand...
Click to expand...

It seems like I'm getting the full treatment. Happy ending expected.
 
Someone found a relatively cheap accounting company to do the CIT? seems like I can only find 2000 AED/month firms which is outrageous

Fixed costs with an FZCO become incredibly high.. can't wait to move to HK
 
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