Dubai - First Audit Request From DIEZ

[MankouJoe]

We just got our first audit request from Dubai Integrated Economic Zones Authority and one of the requirements is for audited financial statements - we do not have these. I thought at least until 2023-end we could do our bookkeeping/statement compiling in house; in fact this is what I was advised by our now-absent agent. I haven't responded to DIEZ yet as I'm still trying to find someone to put together audited statements, which strangely, our newly-acquired accountant is unable to do, but they are "searching their network".

The question is, how should I approach this with DIEZ, was I mislead into thinking we could do the statements in-house last year? Deadline for submission is March 10th.

The company is small, with about $200k in turnover last year and one employee.

 

[uranium]

LactoseJoe said:
We just got our first audit request from Dubai Integrated Economic Zones Authority and one of the requirements is for audited financial statements - we do not have these. I thought at least until 2023-end we could do our bookkeeping/statement compiling in house; in fact this is what I was advised by our now-absent agent. I haven't responded to DIEZ yet as I'm still trying to find someone to put together audited statements, which strangely, our newly-acquired accountant is unable to do, but they are "searching their network".

The question is, how should I approach this with DIEZ, was I mislead into thinking we could do the statements in-house last year? Deadline for submission is March 10th.

The company is small, with about $200k in turnover last year and one employee.
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I would recommend to not waste time and quickly go meet accountanting firm who does financial statement audited
Tell them it is urgent and you need it in like a week
You are already late , should have acted yesterday
You never know if Diez would fine you if you don't send documents by deadline

 

[Nomado]

I also thought that only companies making over 50 millions aed were obliged to produce audited financial statements...

Cf #318
https://mof.gov.ae/corporate-tax-faq/#:~:text=N. Accounting Standards and Methods

 

[Larin]

I've been told that I will need to produce audited accounts to renew company license starting in 2024 by IFZA. I suspect it might be universal.

 

[JackAlabama]

LactoseJoe said:
We just got our first audit request from Dubai Integrated Economic Zones Authority and one of the requirements is for audited financial statements - we do not have these. I thought at least until 2023-end we could do our bookkeeping/statement compiling in house; in fact this is what I was advised by our now-absent agent. I haven't responded to DIEZ yet as I'm still trying to find someone to put together audited statements, which strangely, our newly-acquired accountant is unable to do, but they are "searching their network".

The question is, how should I approach this with DIEZ, was I mislead into thinking we could do the statements in-house last year? Deadline for submission is March 10th.

The company is small, with about $200k in turnover last year and one employee.
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thats coming in as an inspection right?
A company im shareholder in got hit by this pleasure as well recently. However was not needed to have it audited.

Recently Ive heard of a bunch of these happening, so yeah getting off the fatf list comes at a cost.

Larin said:
I've been told that I will need to produce audited accounts to renew company license starting in 2024 by IFZA. I suspect it might be universal.
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really? Has that been changed. Last time I asked they told just provide financial statements to renew. But who knows as always.

 

[Nomado]

Larin said:
I've been told that I will need to produce audited accounts to renew company license starting in 2024 by IFZA. I suspect it might be universal.
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Well, what about sending them the link to the MoF website ?

Nomado said:
Cf #318
https://mof.gov.ae/corporate-tax-faq/#:~:text=N. Accounting Standards and Methods
Click to expand...

 

[Larin]

Nomado said:
Well, what about sending them the link to the MoF website ?
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You're right I just checked and they said that setting 2024 you will need to provide financial statements to renew. I did an audit anyway for 2k AED since that will be required to close down the company (along with a liquidation report) and I'm definitely going to do that at the end of the year.

 

[Nomado]

Ok, so no ''audited'' financial statments, just normal statements.

Can I ask you how long did it take to get the audit done after you ordered it ?

 

[Larin]

It's been about a month, but I have a very simple entity.

 

[sergeylim88]

can you tell me who did you use for that?
did they charge you 2000 AED for accounting + audit?

 

[Larin]

If you DM me, I am happy to share the audit firm. They cleaned up my accounting and did the audit for 2k AED. I'm just finishing it up and have been fairly happy so far.

 

[sergeylim88]

i don't have an option to send dm
can you do that?

 

[Dandyline]

LactoseJoe said:
We just got our first audit request from Dubai Integrated Economic Zones Authority and one of the requirements is for audited financial statements - we do not have these. I thought at least until 2023-end we could do our bookkeeping/statement compiling in house; in fact this is what I was advised by our now-absent agent. I haven't responded to DIEZ yet as I'm still trying to find someone to put together audited statements, which strangely, our newly-acquired accountant is unable to do, but they are "searching their network".

The question is, how should I approach this with DIEZ, was I mislead into thinking we could do the statements in-house last year? Deadline for submission is March 10th.

The company is small, with about $200k in turnover last year and one employee.
Click to expand...

When did your financial year start?

Audit starts from 2025 for companies with normal financial year Jan-Dec

Last edited: Mar 1, 2024

 

[Larin]

As I said, I did an audit because it will be required to close the company not for any other reason.

 

[Dandyline]

Larin said:
You're right I just checked and they said that setting 2024 you will need to provide financial statements to renew. I did an audit anyway for 2k AED since that will be required to close down the company (along with a liquidation report) and I'm definitely going to do that at the end of the year.
Click to expand...

Audit for what? Audits starts from 2024 and should be made 2025.

Larin said:
As I said, I did an audit because it will be required to close the company not for any other reason.
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Renew or close?

 

[csp dubai]

in dubai legislation is always m clear and unpredicble, the indian staff is always polite and trained for their job, the tax authorites they are there to help you for solving any question, and if here is any misunderstanding in the aiport they will help you giving you travel ban allowing you to stay till you pay for all your petty mistake, perfect country .
You will pay 9% tax allowing the emir to invest you money with out you having the burden to decide where. should be spend , and relief you of useless things like election and democracy

 

[MankouJoe]

uranium said:
I would recommend to not waste time and quickly go meet accountanting firm who does financial statement audited
Tell them it is urgent and you need it in like a week
You are already late , should have acted yesterday
You never know if Diez would fine you if you don't send documents by deadline
Click to expand...

I'm on this already. We have another accountancy firm that were part of our search last year that - fingers crossed - can help. Additionally, I'm reaching out to DIEZ, IFZA and also an EU-based accountant to see if we can just whack something together for last year (that's better than my in-house one) and send that through.

The funny thing is, the phone number in the DIEZ email is dead, and they haven't responded to the email I send two days ago. The phone number on the diez.ae site is a dud also. Our current accountant seems to think this request isn't a big deal - her words.

JackAlabama said:
thats coming in as an inspection right?
A company im shareholder in got hit by this pleasure as well recently. However was not needed to have it audited.
Click to expand...

From the email: undertaking an offsite assessment of “XXXX - FZCO”

Larin said:
You're right I just checked and they said that setting 2024 you will need to provide financial statements to renew. I did an audit anyway for 2k AED since that will be required to close down the company (along with a liquidation report) and I'm definitely going to do that at the end of the year.
Click to expand...

Might have to get in touch regarding the audit Co. if my contacts don't pull through. Thanks for the information.

Dandyline said:
When did your financial year start?

Audit starts from 2025 for companies with normal financial year Jan-Dec
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First financial year was 12/2022 - 31/12/2023. What you're saying re audits starting from 2025 was the same as my information too.

 

[Larin]

Dandyline said:
Audit for what? Audits starts from 2024 and should be made 2025.


Renew or close?
Click to expand...

Close.

 

[Dandyline]

LactoseJoe said:
First financial year was 12/2022 - 31/12/2023. What you're saying re audits starting from 2025 was the same as my information too.
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Yes, thats correct.. First audit is 2025.

Not sure what your request is about.

 

[MankouJoe]

Dandyline said:
Yes, thats correct.. First audit is 2025.

Not sure what your request is about.
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It's a bit strange, plus the phone number in the DIEZ email doesn't work. They still haven't replied to my query from Wednesday. It has the hallmarks of a scam but the sender email seems real.

Found another accountancy firm - one we rejected in our initial screening - so let's see how this goes.