Dubai Silicon Oasis Auditors: DIEZ Audit Requirements

Dubai Silicon Oasis now operates within DIEZ

Dubai Silicon Oasis is one of the zones brought together under Dubai Integrated Economic Zones Authority. The DIEZ Implementing Regulations 2023 provide the current corporate framework for DSO company records, annual accounts, auditor appointment, reporting and filing. Older references to DSOA requirements should be checked against this framework.

Does a DSO company require an audit?

Under Regulation 65, an FZCO must maintain records, prepare accounts and have the accounts audited. A PLC has corresponding obligations under the Regulations and applicable markets laws. Records must be preserved for at least six years from creation, while UAE tax rules can impose additional retention requirements.

When is the auditor appointed?

An FZCO appoints an auditor within six months after the end of its financial year or, if earlier, before the accounts are sent to shareholders. The appointment is normally made by a directors’ resolution unless shareholders appoint the auditor by ordinary resolution.

Independence and acceptance

The auditor must consent in writing and must not accept where there is a conflict of interest or insufficient independence. Because authority acceptance and engagement requirements can change, the company should confirm the proposed auditor’s current eligibility for the specific DSO report before signing.

Annual accounts and filing

The accounts must be prepared and approved by the directors and examined and reported on by the auditor. The Regulations state that an FZCO files a copy of the accounts and auditor’s report with the Registrar within 30 days after the accounts have been examined and reported upon. Confirm the current portal workflow and any entity-specific instruction.

What the auditor considers

The auditor reports on whether the accounts have been properly prepared, give a true and fair view and meet other required matters. The work includes considering whether adequate records have been kept and whether the financial statements agree with those records.

Corporate tax for DSO companies

DSO is identified as a Free Zone for UAE Corporate tax purposes, but the 0% rate is not automatic. The company must test all QFZP conditions, including Qualifying Income, substance, de minimis, transfer pricing and audited financial statements, for each tax period.

DSO audit preparation checklist

• Close and reconcile the trial balance, banks and control accounts.
• Prepare receivable, payable, inventory, fixed-asset and payroll schedules.
• Document contracts, related parties, estimates and subsequent events.
• Reconcile VAT and Corporate tax records to the financial statements.
• Approve the accounts and allow time for the required filing after the audit.

How SAIF Chartered Accountants can help

SAIF Chartered Accountants supports DSO businesses with audit planning, statutory audit, financial statements, accounting cleanup and UAE Corporate tax coordination, subject to confirming current engagement eligibility.