UAE Tax Authority Mandates Agreed-Upon Procedures for Qualifying Free Zone Goods Distributors

The UAE Federal Tax Authority has issued compliance guidance on Decision No. 6 of 2026 regarding Qualifying Free Zone Persons engaged in the distribution of goods or materials in or from Designated Zones, according to MBG Corporate Services.

Under the guidelines, eligible businesses must engage an independent auditor to execute an Agreed-Upon Procedures (AUP) report to maintain eligibility for the 0% Corporate Tax rate. The completed AUP report must be submitted to the tax authority within 30 days following the statutory Corporate Tax return filing deadline.

External auditors are required to verify that customers act as genuine resellers and confirm that imported goods entered through approved Designated Zones. Failure to fulfill these procedures will cause the income to be treated as non-qualifying, subjecting the business to the standard 9% corporate tax rate.