July 15, 2026

Introduction The UAE’s Corporate Tax system continues to evolve as the country strengthens its tax framework while maintaining its reputation as a global business hub. Since Corporate Tax was introduced, businesses have seen several updates aimed at improving transparency, standardising compliance, and aligning the UAE with internationally recognised tax practices. The latest development is particularly important for certain Qualifying Free Zone Persons (QFZPs) that carry out the distribution of goods in or from a Designated Zone. Beginning with tax periods starting on or after 1 January 2026, some qualifying businesses will have an additional compliance obligation alongside their annual Corporate Tax Return. In addition to filing their tax return, they will also be required to submit an Agreed-Upon Procedures (AUP) Report prepared by an independent external auditor. For many businesses, this means Corporate Tax compliance will no longer end with filing a return. Companies will also need to maintain stronger documentation, organise supporting records, and prepare for an independent verification process. Although the new requirement applies only to specific businesses, understanding how it works is important for every Free Zone company. Business owners should first determine whether they fall within the scope of the new rules and, if they do, begin preparing their documentation well before their filing deadline. In this article, we’ll explain what has changed, who is affected, what information auditors will review, and the practical steps businesses can take to stay compliant under the new requirements. Why Has the FTA Introduced This New Requirement? As international trade becomes more interconnected, tax authorities around the world are placing greater emphasis on transparency and accurate reporting. The UAE is no exception. Rather than introducing a new tax, this update is designed to strengthen the verification process for businesses that benefit from the Corporate Tax rules available to certain Qualifying Free Zone Persons. The Federal Tax Authority (FTA) wants businesses claiming these benefits to demonstrate that they genuinely meet the qualifying conditions. Instead of relying solely on information provided in the Corporate Tax Return, eligible businesses will now need an independent auditor to verify specific aspects of their distribution activities through an Agreed-Upon Procedures Report. This additional layer of verification helps improve confidence in the accuracy of tax filings while ensuring that businesses maintain appropriate supporting documentation for their transactions. What Exactly Has Changed? Under FTA Decision No. 6 of 2026 which can be downloaded in PDF by clicking here, certain Qualifying Free Zone Persons engaged in qualifying distribution activities will now have two Corporate Tax-related filing obligations instead of one. Previously, businesses generally prepared their financial records and submitted their annual Corporate Tax Return. From the 2026 tax period onwards, eligible businesses must also obtain an Agreed-Upon Procedures (AUP) Report, which must be submitted within 30 days after the due date of the Corporate Tax Return. This change means that compliance is no longer limited to preparing tax calculations. Businesses will also need to ensure that their operational records, import documentation, customer information, and supporting commercial documents are organised and available for independent review. At a Glance: What Has Changed? Previous Requirement New Requirement (For Eligible QFZPs) Corporate Tax Return Corporate Tax Return plus Agreed-Upon Procedures Report One annual filing obligation Two compliance deadlines Standard supporting records Additional verification by an independent auditor Financial reporting Financial reporting combined with procedural verification Why This Matters for Businesses For businesses that fall within the scope of the decision, this update is more than an additional form to submit. It may require improvements to record keeping, stronger coordination between finance and logistics teams, earlier communication with auditors, and better documentation of commercial transactions. Companies that already maintain organised accounting records and supporting documents are likely to find the transition smoother. However, businesses with incomplete documentation or informal record-keeping practices may need to review and strengthen their internal compliance processes before their first filing under the new requirements. In practical terms, preparing throughout the year rather than waiting until the filing deadline will become increasingly important. Keeping invoices, customs documents, shipping records, purchase orders, and customer information properly organised can save significant time during the audit process and reduce the risk of delays.