DDA Makes Audit Report Submission Mandatory: Deadline Approaching
Free zone companies licensed by the Dubai Development Authority (DDA) are required to submit their audited financial statements to the authority. The deadline for submitting the audited financial statements to the DDA is 30th November 2022. Companies can approach the best audit firms in Dubai to audit their financial statement and submit it without fail to the DDA. By using audit services in Dubai you can avoid the consequences of not submitting the audit report within the deadline.
The businesses operating under the DDA may struggle to ensure proper compliance with the audit report submission. This article will serve as guidance for DDA-licensed companies to ensure they comply with the mandatory audit report submission requirement. Read ahead to know how to submit the audit report to the DDA in compliance with relevant laws, regulations and standards:
What is Dubai Development Authority?
Previously known as the Dubai Creative Clusters Authority (DCCA), the DDA is a government authority that regulates certain free zones located in the Barsha area of Dubai. The following are the free zones regulated by the DDA:
- Dubai Internet City
- Dubai Media City
- Dubai Outsource City
- Dubai Production City
- Dubai Knowledge Park
- Dubai Studio City
- Dubai Design District
- Dubai International Academic City
- Dubai Science Park
DDA Audit Report Submission: What’s the Objective?
The DDA audit report submission obligation is in line with Regulations 63-68 of the Private Companies Regulations of 2016. Submitting the audited financial statements to the DDA is also essential to ensure compliance with relevant Federal and Local laws, especially the laws regarding Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT), Economic Substance Regulations (ESR), and tax laws. Moreover, as per the Public Tax Consultation Document, free zone entities may be required to submit their audited financial statements to enjoy the 0% tax rate under the proposed UAE Corporate Tax.
What Type of Entities Must Submit the Audit Report to the DDA?
The DDA audit report submission requirement applies to both Free Zone Limited Liability Companies (FZ LLCs) and branches. However, a branch office licensed by the DDA can submit the consolidated Audited Financial Statement of its parent company or a stand-alone extract of the financials of the branch office operation only. Hire registered audit firms in Dubai to make the DDA audit report submission prompt and flawless.
When Is the Deadline to Submit the Audited Financial Statements to DDA?
Companies must submit their most recent audited financial statement on or before 30th November 2022. Thereafter, all the entities need to submit the audited financial statement within six months from the financial year-end. A company that is newly registered and yet to complete its first financial year is required to provide the Audited Financial Statement within six months from its first financial year-end. Avail of the best audit services in Dubai to ensure your submitted audited financial statements comply with local and international standards.
How to Submit the Mandatory DDA Audit Reports?
A company registered with the DDA must submit the duly filled Financial Statements Report Summary Sheet along with its Audited Financial Statement via the AXS portal. The AXS is a smart service platform offering access to over 200 government and corporate solutions. Companies in DDA-free zones can easily avail of all services under one roof by accessing the AXS services.
What if You Do Not Submit the Mandatory DDA Audit Report?
The DDA will carefully monitor the submission of Audited Financial Statements from its member companies. Any company that fails to submit the audit report within the deadline may incur fines or other consequences as per the Decision No (2) of 2017 at the sole discretion of the DDA. The non-submission of the audited financial statements may even impact the renewal of your company’s trade license. You can avoid penalties and other consequences by getting your financial statements audited by the best audit companies in Dubai.
Hire the Best Audit Firms in Dubai for your DDA Audit Reports
As the deadline for DDA audit report submission is approaching, businesses registered with the authority are advised to avail of the top audit services in Dubai to ensure compliance. When it comes to audit firms in Dubai, Jitendra Chartered Accountants (JCA) is the leading name with more than 20 years of experience. JCA’s qualified auditors in Dubai can help you to get your financial statements audited as per local and international standards. JCA is registered with the DDA and other free zones. By providing top-quality audit services, we ensure our clients can ensure compliance with the authorities and avoid fines.