Dubai: to audit or not to audit?

[yoyodubai]

With the inspection notices from DIEZ that everyone has been receiving, I thought it would be good to get some input from the community.

I have been in contact with IFZA and they maintain that there are no audit requirements for IFZA companies. For reference, my company was incorporated in 2022.

As part of the DIEZ inspection, I shared that I do not have audited financial statements as it was not a requirement for 2022-23, and my accounts are in the process of being finalized for 2023-24. They had no issue with this and asked me to send across the rest of the information they requested. Within an hour of submission, I received an email that I had passed their inspection....

I have looked at the corporate tax regulations, and even here there is no audit requirement if your revenue is less than AED 50 million during a relevant tax period or if you're not regarded as a QFZP (to get 0% tax).

As such, I'm not sure if an audit is actually required.

Thoughts?

 

[JackAlabama]

yoyodubai said:
With the inspection notices from DIEZ that everyone has been receiving, I thought it would be good to get some input from the community.

I have been in contact with IFZA and they maintain that there are no audit requirements for IFZA companies. For reference, my company was incorporated in 2022.

As part of the DIEZ inspection, I shared that I do not have audited financial statements as it was not a requirement for 2022-23, and my accounts are in the process of being finalized for 2023-24. They had no issue with this and asked me to send across the rest of the information they requested. Within an hour of submission, I received an email that I had passed their inspection....

I have looked at the corporate tax regulations, and even here there is no audit requirement if your revenue is less than AED 50 million during a relevant tax period or if you're not regarded as a QFZP (to get 0% tax).

As such, I'm not sure if an audit is actually required.

Thoughts?
Click to expand...

not required as of now. However one requires and tells you this, the next tells you that so you can never know.

 

[yoyodubai]

JackAlabama said:
not required as of now. However one requires and tells you this, the next tells you that so you can never know.
Click to expand...

This is the problem. Are you doing a wait and see approach, or biting the bullet and doing an audit?

 

[JackAlabama]

yoyodubai said:
This is the problem. Are you doing a wait and see approach, or biting the bullet and doing an audit?
Click to expand...

Wait and see approach as with everything, but Id have a few contacts ready to reach out just in case.

 

[ActionMan]

Bookkeep everything, leave the audit for later once the air clears. if you are not doing the former, I would advise you to do it soon.

Toggle signature

One-Stop Solutions​

Payment Processing ✓ | Offshore Bank Accounts ✓ | â‚¿ Crypto On-Off Ramping Services ✓ | High-Risk Industries ✓​

Let's connect: DM me on Telegram HERE

Russian, LATAM and MENA : SBP, Visa/MasterCard/JCB/MIR?/wallets available | local OTC/e-wallets available per request.​

 

[Berti]

yoyodubai said:
With the inspection notices from DIEZ that everyone has been receiving, I thought it would be good to get some input from the community.

I have been in contact with IFZA and they maintain that there are no audit requirements for IFZA companies. For reference, my company was incorporated in 2022.

As part of the DIEZ inspection, I shared that I do not have audited financial statements as it was not a requirement for 2022-23, and my accounts are in the process of being finalized for 2023-24. They had no issue with this and asked me to send across the rest of the information they requested. Within an hour of submission, I received an email that I had passed their inspection....

I have looked at the corporate tax regulations, and even here there is no audit requirement if your revenue is less than AED 50 million during a relevant tax period or if you're not regarded as a QFZP (to get 0% tax).

As such, I'm not sure if an audit is actually required.

Thoughts?
Click to expand...

May I ask how did you receive the inspection notice? Email? Physical letter? Via your setup agent (if any)?

 

[yoyodubai]

Berti said:
May I ask how did you receive the inspection notice? Email? Physical letter? Via your setup agent (if any)?
Click to expand...

Email. Just randomly received one early morning.

 

[JackAlabama]

yoyodubai said:
Email. Just randomly received one early morning.
Click to expand...

yes it comes right out of the blue. You go peacefully your day not suspecting anything and the hammer falls down.

 

[PiersBlack]

yoyodubai said:
With the inspection notices from DIEZ that everyone has been receiving, I thought it would be good to get some input from the community.

I have been in contact with IFZA and they maintain that there are no audit requirements for IFZA companies. For reference, my company was incorporated in 2022.

As part of the DIEZ inspection, I shared that I do not have audited financial statements as it was not a requirement for 2022-23, and my accounts are in the process of being finalized for 2023-24. They had no issue with this and asked me to send across the rest of the information they requested. Within an hour of submission, I received an email that I had passed their inspection....

I have looked at the corporate tax regulations, and even here there is no audit requirement if your revenue is less than AED 50 million during a relevant tax period or if you're not regarded as a QFZP (to get 0% tax).

As such, I'm not sure if an audit is actually required.

Thoughts?
Click to expand...

Did you send them non-audited financial statements OR you didn't send any financial statements at all (because you were still in the process of finalizing them)?

 

[alain]

JackAlabama said:
yes it comes right out of the blue. You go peacefully your day not suspecting anything and the hammer falls down.
Click to expand...

Most often like this if it has something to do with authorities and the tax office

 

[JackAlabama]

alain said:
Most often like this if it has something to do with authorities and the tax office
Click to expand...

nope... not in these cases.