10 October 2026 · Support
Get the QFZP File Ready
The Federal Tax Authority expects a QFZP to support its tax treatment with records that connect the business facts to the return. Exiloz can prepare the revenue map, allocation schedules, reconciliation and evidence index, then hand the file to the independent auditor where an audit or agreed-upon procedures report is required. Exiloz does not perform statutory audits.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Working-paper support starts with a bridge
Working-paper support begins with a reconciliation from the trial balance to the QFZP return. Article 18 of Federal Decree-Law No. 47 of 2022 sets the status conditions. Ministerial Decision No. 229 of 2025 sets the current qualifying and excluded activity framework and de minimis test. Ministerial Decision No. 84 of 2025 requires audited financial statements for every QFZP. The support file has to join those rules to the company's records.
The output is not a new set of generic checklists. We recommend a revenue register with classifications, a de minimis schedule, a direct and shared-cost allocation, a related-party trail, a tie-out to the financial statements and an evidence index. Each conclusion should point to a contract, invoice, ledger entry, operating record or signed statement that another reviewer can locate.
Exiloz can prepare the schedules, reconcile the calculations and list the evidence gaps for management. It is not a registered Tax Agent and does not perform statutory audits. The engagement should say who approves the tax position, who submits the return, who signs the financial statements and who handles any separate assurance work.
Build the file in the order a reviewer will use
Start with the entity map and Tax Period. Confirm the Free Zone registration, branches, outside locations, activities and related parties. Then export the full revenue ledger and connect each stream to its customer, beneficiary, contract and activity. This order prevents the team from calculating a rate first and searching for a reason later.
Next, split direct costs from shared costs and write the allocation basis beside every shared schedule. Test the de minimis population using the current Ministerial Decision No. 229 of 2025 wording. Where the business distributes goods or materials in or from a Designated Zone, identify the additional work described by FTA Decision No. 6 of 2026 before the evidence pack is closed.
Finish with a tie-out. Total revenue, expenses and profit in the working papers should agree with the final trial balance and audited financial statements. Every tax adjustment should have a source or calculation. Open items should name an owner and a decision date. A file ready for review is one where the reviewer can see what is known, what is assumed and what still needs evidence.
| Stage | Output | Decision it supports |
|---|---|---|
| 1. Scope | Entity, periods, licences and activity map | Which QFZP conditions need testing |
| 2. Revenue | Classified register and de minimis schedule | What income enters each component |
| 3. Costs | Direct-cost and shared-cost schedule | How profit is allocated |
| 4. Tie-out | Statements, ledger, computation and evidence index | Whether the file is ready for review |
Make every conclusion easy to test
A reviewer should be able to choose a revenue line and follow it through the file. The line should lead to the invoice, contract, customer status, activity conclusion, cost treatment and return component. For a shared cost, the schedule should show the source amount, allocation key, calculation and ledger reference. For a related-party charge, add the agreement, service description and pricing basis.
The mistake we see most is starting from the tax portal fields and backfilling support after the numbers are entered. That reverses the work. Start with the records while the transaction owners can still explain what happened. The final return should be the last expression of the schedules, not the place where an unexplained total first appears.
Here is an illustrative rate bridge. If Qualifying Income is AED 800,000 and Domestic Permanent Establishment income is AED 200,000, then 0% of AED 800,000 is AED 0 and 9% of AED 200,000 is AED 18,000. The illustrative total is AED 0 plus AED 18,000 = AED 18,000, before any other Corporate Tax adjustments. The file must show why each amount belongs in its component.
Prepare the handoff without taking the audit
Ministerial Decision No. 84 of 2025 requires every QFZP to prepare and maintain audited financial statements. The AED 50,000,000 threshold applies separately to a Taxable Person that is not a Tax Group. A QFZP is not released from the audit condition because its Revenue is below that threshold. Put the signed statements, audit report, final trial balance and reconciliation into the same indexed pack.
For a QFZP distributing goods or materials in or from a Designated Zone, FTA Decision No. 6 of 2026 sets additional compliance procedures. The support team can assemble the customer, goods-flow, import and ledger population for the independent auditor. It must not describe that preparation as an auditor's report or imply that the tax adviser performs assurance work.
Give the auditor a controlled pack with stable file names, a population listing, cross-references and an open-items note. Preserve the version sent for review. If the auditor asks for a different population or a new document, update the index and record the change. That small discipline prevents two versions of the QFZP story from circulating.
A ready file is specific about its limits
A ready QFZP file does not claim certainty where the records are thin. It states the entity, Tax Period, revenue population, allocation method, audit status and unresolved classifications. It also records the effect of a failed condition. Under Ministerial Decision No. 229 of 2025, a failure can remove QFZP status from the beginning of the relevant period and the subsequent four Tax Periods, so an open item needs a real owner.
The boundary is unsettled where a business description does not reveal the full activity. The FTA guide gives the framework, but a mixed operating model may require contracts, customer use, locations and conduct to be reviewed together. Do not turn that fact-specific question into a confident tick box. State what is missing and what evidence would close it.
Today's practical handoff is short: send the full revenue ledger, trial balance, financial statements, contracts for material streams, related-party schedules and location details. Exiloz can build the bridge and evidence index around those records. It is not a registered Tax Agent and does not perform statutory audits.
Related guides
Frequently Asked Questions
For getting a QFZP file ready for review.
What does QFZP working-paper support include?
The Federal Tax Authority's Free Zone Persons guidance supports a file that connects the facts to the return. Exiloz can prepare the revenue map, expense allocation, financial-statement reconciliation, evidence index and open-items list for management approval.
Will Exiloz perform the statutory audit?
No. The Federal Tax Authority requires audited financial statements and, for affected distribution activity, may require agreed-upon procedures by an independent external auditor. Exiloz prepares tax working papers and support records, then leaves the assurance work with the independent auditor.
When should the working-paper file start?
The Federal Tax Authority's guidance makes the records part of the compliance position, so preparation should begin while transactions and classifications are still easy to trace. Starting before the return gives management time to resolve gaps and gives the auditor usable source records.
Can Exiloz work with our existing auditor?
Yes. Exiloz can prepare schedules and cross-references in a format your independent auditor can review, while the Federal Tax Authority's requirements remain the reference point for the tax file and any separate audit deliverable, without taking responsibility for assurance work.
Ready to build the file?
Exiloz prepares the QFZP bridge, schedules and evidence index for your filing and auditor handoff.