21/07/2026
The Federal Tax Authority has introduced new compliance requirements for Qualifying Free Zone Persons (QFZPs) involved in the distribution of goods or materials in or from a Designated Zone. The new rules apply to tax periods beginning on or after 1 January 2026.
One of the biggest changes is the requirement for affected businesses to obtain an Agreed-Upon Procedures (AUP) Report, prepared by an independent UAE-licensed auditor. The report must verify key conditions, including that customers are genuine resellers and that imported goods entered the UAE through a Designated Zone where applicable.
The AUP Report must then be submitted to the FTA within 30 days of the Corporate Tax return filing deadline. Failure to meet these requirements could put a business's eligibility for the 0% Free Zone Corporate Tax regime at risk.
For businesses operating in UAE Free Zones, this marks another step towards increased transparency and stronger compliance expectations. Now is the time to review your existing processes, ensure the necessary documentation is in place, and understand whether these new requirements apply to your operations.
Our team at Legends Accounting helps your business stay ahead of regulatory developments so you can stay focused on growing your business. If you're unsure how these changes affect your Free Zone business, our team is here to help you navigate them with confidence. Reach out to us below:
📧 [email protected]
☎️ +97142400664
💬 https://wa.me/971526295221
🌐 www.legendsaccounting.com
