FrankDigit flawlessly handled our QFZP status, guaranteeing the 0% Corporate Tax rate on qualifying income. Their expertise in complex UAE taxation and compliance is indispensable.

Omar Al Khouri

The A2X integration with Xero totally automated our Marketplace Accounting. We now have a precise breakdown of fees, refunds, and sales for perfect VAT reporting and profit clarity.

Sarah Jenkins

We rely on them for all Web3 accounting. They track all staking rewards and token swaps using a specialized crypto sub-ledger, ensuring full VARA and Corporate Tax compliance.

Fahad Rashed

FrankDigit acted as our Licensed Liquidator, managing the final clearances and all FTA Deregistration. It saved us from massive penalties and ensured a clean, legal closure of our LLC.

David Chen

"ERP Integration was key to our growth. Automated COGS and inventory reconciliation guarantees Audit-Ready Financial Statements, eliminating costly human errors."

Ayesha Malik

The process to secure my Tax Residency Certificate (TRC) was very fast and simple. Their expert guidance on the DTAA benefits is very very crucial for my Cross-Border Taxation Planning.

Ravi Sharma

Their proactive compliance audit of our AML/UBO status ensures total regulatory protection. Our Trade License and governance framework now meet all Ministry of Economy standards.

Fatima Saeed

"We needed intercompany verification. The Agreed Upon Procedure (AUP) Report rigorously defended the Arm’s Length Principle and gave much stakeholders reliable data."

Marcus Holt

FAQ

Most Frequently Asked Questions

Read all FAQ⬈

Is professional bookkeeping mandatory in the UAE?

Yes. All companies must maintain proper financial records and accounting books for a minimum of five to seven years to comply with UAE Commercial Law and FTA requirements for VAT and Corporate Tax.

How often should I update my company’s accounts?

We strongly recommend monthly bookkeeping. This guarantees your financials are real-time, ensures immediate reconciliation, and prevents costly backlog and compliance issues during quarterly VAT filing.

How long does it take to clear an accounting backlog?

The timeline depends on complexity and volume (e.g., months vs. years of missing data). We start with a Gap Analysis and aim for a fast resolution, prioritizing compliance filings (VAT) first, typically resolving small backlogs in 4-8 weeks.

What exactly is 'Audit-Ready Bookkeeping'?

It means your books are maintained to IFRS standards with every transaction verifiable by a source document, a clean audit trail, and fully reconciled accounts (bank, AR/AP), allowing your annual audit to pass swiftly.

What is the role of Cloud Accounting in UAE compliance?

Cloud systems (Xero, QuickBooks, Zoho) are crucial because they automate VAT calculations, provide real-time reporting, and offer a secure, digital audit trail, which minimizes human error and is preferred by the FTA.

Do you offer an outsourced CFO service?

Yes, our service includes strategic financial advice, budgeting, cash flow forecasting, KPI tracking, and liaising with external auditors—providing high-level financial guidance typical of a Virtual CFO.

Who must register for Corporate Tax (CT) in the UAE?

All juridical persons (LLCs, FZEs, FZCOs) and natural persons acting as businesses with revenue over AED 1 million must register. Registration is mandatory even if you are exempt or expect 0% tax.

What are the tax rates for CT and VAT?

Corporate Tax (CT): 0% on net profit up to AED 375,000; 9% on net profit above this threshold. VAT: Standard rate is 5%.

How do Free Zone companies ensure they qualify for 0% CT?

They must apply as a Qualifying Free Zone Person (QFZP), derive Qualifying Income (mostly international trade/finance), and maintain Economic Substance (ESR) in the UAE. Failure risks a 9% tax liability on all income.

What is the penalty for late VAT de-registration?

If your business becomes ineligible for VAT registration (e.g., stops making taxable supplies) and you fail to de-register within 20 business days, you will incur an AED 10,000 fine.

Can the FTA fine me for historical tax periods?

Yes. The FTA has the authority to audit records and impose penalties for non-compliance for tax periods extending back several years, emphasizing the need for long-term record retention.

Do I have to register for Excise Tax if I only store the goods?

Yes. Businesses involved in the Import, Production, or Stockpiling of excisable goods (tobacco, energy drinks, sweetened beverages) must register for Excise Tax (and related product registration), regardless of turnover.

What are the requirements for Audit-Ready Financial Statements?

Statements must be prepared using IFRS (International Financial Reporting Standards), be free from material error, and be supported by 100% reconciled ledgers and a complete audit trail of all transactions.

What are the core components of IFRS-compliant statements?

The full set includes: Statement of Financial Position (Balance Sheet), Statement of Profit or Loss, Statement of Cash Flows, Statement of Changes in Equity, and comprehensive Notes to the Accounts (Disclosures).

What is the purpose of an Internal Audit, separate from the External Audit?

An Internal Audit is a management tool used to assess and strengthen internal controls, identify fraud risk, and improve operational efficiency. It prepares the company for a cleaner External Audit.

What is the purpose of the Management Letter from the auditor?

The Management Letter is an internal document that highlights weaknesses in the company's internal controls, systems, or process inefficiencies, offering recommendations for improvement to management.

Can I challenge an FTA Audit finding or penalty?

Yes. You have the right to file a Reconsideration Request with the FTA within 20 business days of receiving the assessment notice, and you can be represented by an FTA-Approved Tax Agent.

What documents are needed for a corporate TRC application?

Key documents include a valid Trade License, Audited Financial Statements (covering the relevant year), a Certified Office Lease Agreement, and 6 months of UAE Bank Statements.

How do I reconcile the Net Payout from Amazon/Noon with my bank?

You must use specialized e-commerce reconciliation tools (e.g., A2X, Webgility) to automatically break down the lump-sum payout into its components: Gross Sales, Fees, Refunds, and VAT deductions, before matching the net amount to the bank deposit.

How do marketplace fees affect my Corporate Tax?

Platform fees (referral, fulfillment, advertising) are essential Allowable Deductions that reduce your taxable income. Our service correctly tracks and categorizes these fees to maximize your deduction and minimize CT liability.

Is VAT charged on sales made through Shopify to UAE customers?

Yes. If your business is VAT-registered, the standard 5% VAT must be charged and accurately recorded on all sales of taxable goods to final consumers within the UAE.

What is a Crypto Sub-Ledger, and why is it necessary?

A Crypto Sub-ledger is specialized software that aggregates and tracks volatile on-chain data (wallets, exchanges, DeFi) and automatically translates it into structured, IFRS-compliant accounting entries for your General Ledger (Xero/QuickBooks).

What are the tax risks of co-mingling personal and business crypto wallets?

High Risk. Co-mingling makes it impossible to legally distinguish tax-exempt personal gains from taxable corporate income, which will instantly trigger a full FTA Tax Audit and potential penalties.

What is a 'Gross Turnover Audit' for a retail business?

A specialized Sales Audit (AUP) where we verify a retail tenant's reported gross sales against POS data and bank records. This is often mandated by mall management to accurately calculate Turnover Rent under the lease agreement.

What are the fastest steps for Mainland company formation?

Choose Activity & Name. 2. Initial Approval (DED). 3. MoA Notarization. 4. Ejari/Office Lease. 5. License Issuance. We manage all PRO services to expedite all government clearances.

What documents require Legal Translation and Attestation in the UAE?

All foreign-issued official documents, such as a Power of Attorney (POA), parent company Board Resolutions, Marriage Certificates (for visa), and foreign MoA/AoA, must be legally translated into Arabic and attested by MOFA.

What is the penalty for submitting non-attested foreign documents?

The primary penalty is immediate rejection of the application (visa, license, bank account) by the authority (Immigration/DED), resulting in significant delays and administrative costs.

What are the fiduciary duties of a company director in the UAE?

Directors have a legal duty to act in the best interest of the company (Duty of Care) and avoid conflicts of interest (Duty of Loyalty). We maintain auditable Board Minutes to prove due diligence was exercised on all major decisions.

Do I need an Audited Financial Statement to open a bank account?

For new companies, a detailed Business Plan and personal bank statements may suffice. However, many banks require Audited Financial Statements for existing companies (even Free Zones) to prove stability and source of funds.

How can I freeze my Trade License instead of liquidating?

Some authorities allow you to freeze a license for up to three years (by paying a fee), but only if the company has zero active visas and no outstanding liabilities. This is only a temporary pause, not a legal closure.

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Our Services

Cloud Accounting & Software Integration (Zoho, QuickBooks, Xero)

SME & Startup Bookkeeping Solutions

Freelancer Accounting & VAT Compliance

Bank Reconciliation & AP/AR Management

Payroll Processing & WPS Compliance

Financial Reporting & IFRS Compliance (Audit-ready reports)

Corporate Tax (CT) Registration & Return Filing

VAT Refund Assistance (Local & Foreign Businesses)

Excise Tax Registration & Reporting

FTA Tax Audit Support & Representation

Tax Residency Certificate (TRC) Issuance

Transfer Pricing Compliance & Documentation

VAT Registration, Return Filing & Advisory

Audit-Ready Financial Statements (IFRS)

External & Internal Audit Assistance

ESR & AML Compliance Audit Support

Corporate Tax & VAT Compliance Audits

ICV Certification & Audit Coordination

Sales Audit & Agreed Upon Procedure (AUP) Reports

VARA Licensing & Compliance Advisory

Crypto Accounting Systems (Xero, QuickBooks Sub-ledgers)

NFT & Web3 Project Accounting & Reporting

Blockchain Portfolio & Wallet Reconciliation

UAE Crypto Tax Compliance (CT/VAT)

Marketplace Accounting (Shopify, Amazon, Noon)

ERP, inventory, tax automation, and FTA compliance

Payment Gateway Integration & Reconciliation

Mainland & Free Zone Company Formation

Company Liquidation & Deregistration

Trade License & Regulatory Compliance

Corporate Secretarial & Governance Support

Legal Translation & Attestation Services

Business Banking & Financial Enablement

Highly Reputed Auditing & Accounting Firms in Dubai, UAE

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