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DSOA Audit Readiness and Compliance
Dubai Silicon Oasis Authority supports technology, electronics and innovation businesses. We help them structure revenue, development spending and tax status.
Where DSOA company records usually go wrong
Authority rules for DSOA
Dubai Silicon Oasis sets its own licence renewal and reporting requirements, so confirm what your authority asks for and keep records aligned with it.
Qualifying Free Zone Person status
Companies aiming for the 0% corporate tax rate on qualifying income must meet set conditions, including audited financial statements and adequate substance.
Qualifying and non-qualifying income
Revenue must be split by type, because income outside the qualifying list is taxed at 9%.
Dealings with mainland customers
Sales to mainland clients can change the tax treatment, so contracts and invoices need to show who the customer is and what was supplied.
Product revenue and development costs
Technology and electronics companies in Dubai Silicon Oasis often combine hardware sales, software licences and engineering services. Each needs its own revenue account and supporting documents. Use delivery notes and customer acceptance for products, licence keys or agreements for software, and signed timesheets or milestones for services.
Development work raises a recurring question. Keep a time record that links engineers to named projects, with notes on whether the project is for a customer or for your own product. That distinction affects how the cost is treated and how it is explained to a reviewer.
Component stock and warranty promises
Electronics firms carry components, finished goods and returned units. Keep these as three separate stock categories with serial or batch numbers where practical, and review slow-moving items each quarter for possible write-down.
If you offer warranty or after-sales support, estimate the cost, record it as an obligation and update it with actual claims. Keep the returns log, repair costs and replacement shipments in the same file, so the estimate has evidence behind it. Also keep a note of any supplier credit for faulty parts, because it reduces both the stock value and the amount you owe.
Intellectual property and group charges
Technology groups often charge each other for shared engineering, brand use and management time. Documenting these items protects you if the charges are questioned. Keep the supporting calculation beside each charge.
- Keep a register of software, designs and patents your company owns or licenses.
- Store the agreement for any royalty, licence fee or management charge paid to a related party.
- Document how each intercompany charge was calculated.
- Agree intercompany balances with the other company at every quarter-end.
- Keep the contracts with distributors and resellers in one folder.
A checklist for your file
- Licence, lease and shareholder documents
- Revenue analysis split by qualifying and non-qualifying income
- Bank reconciliations at year-end
- Contracts supporting major income and cost items
- Fixed asset register and depreciation workings
- Evidence of staff, premises and decision-making in the UAE
Four steps to readiness
- Check status. We review your DSOA licence type and the tax position you are aiming for, starting with how technology and electronics companies usually earn their income.
- Tidy the ledger. We reconcile accounts and tag each DSOA revenue line to the right income category.
- Prepare the file. We assemble the schedules, contracts and substance evidence a reviewer of a DSOA company will ask for.
- Plan the year. We set monthly routines suited to technology and electronics companies, so the next year-end is easier.
What owners usually ask
Does DSOA require audited accounts?
Many free zone authorities ask for annual audited financial statements, and the corporate tax rules require them for Qualifying Free Zone Persons. Please confirm the current requirement with your authority.
Can Numerix audit my company?
No. Audit is outside our licence. We prepare the books and controls so any audit goes smoothly.
Do you work with technology and electronics companies?
Yes. Yes, we shape the records around how technology and electronics companies earn and spend.
How should I record software subscriptions sold to customers?
Spread the revenue over the subscription period. Keep the contract and the billing schedule so each month's share can be shown.
What evidence supports a hardware sale?
A signed delivery note, the sales invoice and proof of payment, linked by one reference number.
Why track engineering time by project?
It shows the real cost of each customer project and separates work for customers from internal development, which helps in pricing and in explaining costs.
Who confirms DSOA reporting requirements?
The authority sets them, so confirm the current requirement with Dubai Silicon Oasis Authority before your renewal.
The limits of our service
Our licence (No. 1360308) covers Accounting & Bookkeeping, Tax Consultant, and Cost Control & Risk Management Services. Any audit your company needs is carried out by an auditor your company appoints; we make sure the books are ready for it.
Plan your next close
Tell us about your dubai silicon oasis business and what you need ready, and we will outline how Numerix can help.
Book a consultationTalk to Numerix Accountants
Reach us by phone, WhatsApp or email and we will set up a free assessment call at a time that works for you.