AUP Report UAE: Agreed-Upon Procedures for Free Zone Distributors and Other Needs
Since the Federal Tax Authority (FTA) issued Decision No. 6 of 2026, free zone distributors that claim the 0% Corporate Tax rate need an independent agreed-upon procedures (AUP) check for every tax period starting on or after 1 January 2026. Avyanco delivers the AUP report in the UAE, from scoping and sampling to document testing and the signed findings.
- 11,500+ businesses supported
- DET licence #909402
- ISRS 4400 engagements
Who needs it: AUP report for free zone distributors
The decision applies to QFZPs whose Qualifying Income includes the distribution of goods or materials in or from a Designated Zone. It does not cover other qualifying activities.
In scope
- A free zone company that resells electronics to UAE retailers is in scope.
Not in scope
- A free zone firm that earns income only from manufacturing, headquarters services or fund management is not.
What an agreed-upon procedures report in the UAE is (and isn't)
This page is for Qualifying Free Zone Persons (QFZPs) that distribute goods in or from a Designated Zone, and for their finance teams. It also helps anyone whose lender, parent company or authority has asked for an agreed-upon procedures report in the UAE.
An independent auditor performs specific procedures that you and the auditor agree in advance. The auditor then reports what was found, as factual findings. The work follows the International Standard on Related Services (ISRS) 4400.
The report gives no opinion and no tax clearance. It does not tell you whether you qualify for the 0% rate. An AUP report in the UAE is a documented check on set facts, not a judgement on your accounts.
Watch: what a UAE free zone is, in 35 seconds
FTA Decision No. 6 of 2026: the AUP report for QFZPs
On 2 June 2026, the FTA Decision No. 6 of 2026 was published in the Official Gazette. This decision introduces an evidence step with respect to the distribution income along with supplementing the Ministerial Decision 84 of 2025 (Article 2 Clause 3) and the distribution activity in the Ministerial Decision 229 of 2025 (Article 2 Clause 1, paragraph (l)).
The FTA wants independent evidence that goods sold from a Designated Zone reach genuine resellers or processors. The AUP report for QFZPs provides that evidence through tested documents. Our guide to Qualifying Free Zone Person rules explains the wider conditions for the 0% rate.
What the report must confirm
The auditor confirms two points, one line each:
Customers buy the goods to resell them, or to process or alter them for sale.
Goods imported into the UAE entered through a Designated Zone.
Both points rest on paperwork. The quality of your customer and import records decides how smoothly the work runs.
Deadline and consequences: AUP report for Corporate Tax in the UAE
The report is due no later than 30 days after the Corporate Tax return deadline for the period, unless the FTA sets another date. The clock runs from the deadline, not from the day you file.
Example: for the calendar-year 2026 tax period, the Corporate Tax return is due on 30 September 2027. The report is then due by 30 October 2027. Plan your AUP report for Corporate Tax in the UAE well before that date, because testing takes time.
If the report is not submitted, the conditions in Ministerial Decision No. 84 of 2025 (Article 2, Clause 3) and Ministerial Decision No. 229 of 2025 (Article 2, Clause 1, paragraph (l)) are treated as not met. That puts the 0% rate on distribution income at risk. Ask your tax adviser how this affects your wider QFZP position.
Other agreed-upon procedures in the UAE
Agreed-upon procedures in the UAE are not limited to free zone distribution. Other common requests include:
Lender covenant checks
Parent-company or franchisor requests
Grant or project spend
Specific balances, such as receivables or stock
Statutory audit, review and AUP compared
| Engagement | What you get |
|---|---|
| Statutory audit | Opinion on the financial statements |
| Review | Limited assurance |
| AUP | Factual findings on set procedures |
How the AUP engagement in the UAE works
A typical AUP engagement in the UAE runs in six steps:
- 1
Scoping call and engagement letter, with the procedures agreed in writing
- 2
Data request: customer list, sales listing and import listing
- 3
Sample selection
- 4
Document testing
- 5
Draft findings reviewed with you
- 6
Signed report issued before the FTA deadline
One partner-led team, start to finish
Licence, bank account, visas and tax handled by one named advisor, with government fees and our fee always shown separately.
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Agreed-upon procedures audit firm in Dubai: what Avyanco delivers
As an agreed-upon procedures audit firm in Dubai, Avyanco runs the engagement under ISRS 4400. Our audit team selects the sample, tests the documents and prepares the working papers.
- Engagement run under ISRS 4400
- DET Corporate Service Provider licence #909402
- Wider audit and assurance services alongside
Engagement
- Engagement letter
Working papers
- Sample working papers
Report
- A signed AUP report in the UAE
Submission
- Help with submission
The procedures and how the sample is chosen
The auditor tests a sample of your transactions against these documents:
- Inspect customer trade licences
- Verify signed customer declarations confirming reseller status
- Review sales agreements, invoices and purchase orders
- Inspect import declarations, customs documents and bills of lading
- Confirm Designated Zone status
- Inspect inventory, warehousing and goods-movement records
AUP report cost in the UAE
Clean records cut hours from the work. Teams that keep sales and import records in one system usually pay less in time and fees. You receive a fixed quote after scoping.
The fee depends on five things
- The number of customers and imports, which sets the sample size
- The quality of your records
- The number of Designated Zones and warehouses involved
- Whether the same firm also audits your financial statements
- The speed of your data and document handover
Questions about AUP reports
Is an AUP the same as an audit?+
No. An AUP report in the UAE records factual findings from agreed procedures. An audit gives an opinion on financial statements. An AUP gives no opinion.
Who can sign an agreed-upon procedures report in the UAE?+
The statutory auditor of your financial statements, or another independent auditor licensed in the UAE, can sign it. The signer must follow ISRS 4400 and UAE auditing law.
Do all QFZPs need the AUP report for QFZPs?+
No. Only QFZPs that distribute goods in or from a Designated Zone need it. Other activities are outside it. Book a Corporate Tax health check to confirm your position.
When is the AUP report for free zone distributors due for 2026?+
No later than 30 days after the Corporate Tax return deadline for the period, unless the FTA sets another date. Check the decision for your exact date.
What affects the AUP report cost in the UAE?+
Fees depend on sample size, record quality, the number of Designated Zones and warehouses, and whether the same firm also audits your financial statements. We quote after scoping.
Can our statutory auditor do the AUP?+
Yes, if the firm is licensed in the UAE and independent for this work. Some companies choose a separate firm to keep the roles apart.
What if some customers won't sign a declaration?+
The auditor reports exactly what the evidence shows, including any missing declarations. Ask customers early and keep copies, because gaps may put the distribution conditions at risk.
Do we submit the report to the FTA ourselves?+
The decision requires the report to reach the FTA by the deadline. We confirm the current submission method at scoping and help you submit the signed report in time.
Request your AUP report in the UAE
Tell us your free zone, tax period end date and roughly how many customers and imports you have. We reply with a scoping call and a fixed quote.
Sources: FTA Decision No. 6 of 2026 · Ministerial Decision No. 84 of 2025 (Article 2, Clause 3) · Ministerial Decision No. 229 of 2025 (Article 2, Clause 1, paragraph (l)) · ISRS 4400 · Federal Tax Authority.
Verification & independence: Avyanco Business Consultancy LLC is a private firm, independent of the Federal Tax Authority and every other UAE authority, and not affiliated with any government agency. The AUP report is signed by a UAE-licensed, Ministry of Economy-registered partner firm that is independent of your company. Rules, deadlines and procedures are set by the authorities and can change. This page is general guidance, not legal, tax or accounting advice.