Agreed-Upon Procedures (AUP) Report
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Agreed-Upon Procedures (AUP) Report Services in the UAE
A specific, auditor‑prepared report is now required to maintain your 0% Corporate Tax rate when distributing goods in or from a Designated Zone
Under FTA Decision No. 6 of 2026, Qualifying Free Zone Persons engaged in the distribution of goods or materials in or from a Designated Zone must obtain an Agreed-Upon Procedures (AUP) report from an independent external auditor. Farahat & Co. prepares this report in full compliance with the decision’s requirements, verifying the two specific conditions the FTA requires evidence of:
- Customer reseller status, confirming your customers genuinely resell, process, or alter the goods or materials supplied
- Importation through a Designated Zone, confirming any goods you import enter the UAE through a Designated Zone specifically
Prepared under ISRS 4400 by an independent external auditor licensed in the UAE, applying the exact statistical sampling methodology the decision prescribes, and delivered within 30 days of your Corporate Tax return deadline.
Missing this report means your distribution income is treated as not meeting its Qualifying Activity conditions, losing the 0% Corporate Tax rate for the period, regardless of whether your business genuinely qualifies.
Get ConsultationOur Specialists In AUP Report
Dr. Imad Kutum
Participant - Audit
Jose Varghese – CA
Participant - Audit
Mamdouh Ali
Participant - Audit
Mohamed Zahran
Audit Manager
V Ramakrishnan
Participant - Audit
As an Approved and trusted Audit Firm In UAE, Farahat Co. Offers Below Audit Services:
What Is an AUP Report, and Who Needs One?
An Agreed-Upon Procedures report is a specific type of auditor engagement performed under International Standard on Related Services (ISRS) 4400. Unlike a statutory audit, the auditor doesn’t provide an opinion, they carry out a defined set of procedures, prescribed by the FTA itself, and report the factual findings against each one.
This requirement applies specifically to Qualifying Free Zone Persons whose Qualifying Activity is the distribution of goods or materials in or from a Designated Zone, effective for tax periods starting on or after 1 January 2026. The report must be prepared by the auditor already responsible for your annual audit, or by any other independent auditor licensed in the UAE.
What Our AUP Engagement Covers
The report must document findings demonstrating two things, each tested through a specific, prescribed set of procedures:
Reseller status verification
Inspection of customer trade licences, review of signed customer declarations confirming resale intent, and examination of sales agreements and invoices for terms consistent with onward sale.
Designated Zone import verification
Inspection of import and customs documentation, confirmation with the relevant Free Zone Authority that the specific zone is officially recognised as a Designated Zone, and review of internal inventory and warehousing records.
Methodology Applied & Timeframe
Prescribed sampling methodology
The decision sets a fixed statistical formula with a 10% margin of error, weighted toward your highest-value transactions and customers for the relevant tax period. We apply this exact methodology, not a generic sampling approach, so the report holds up to FTA scrutiny.
Submission timing
The completed report must reach the FTA within 30 days of your Corporate Tax return deadline. We build the engagement timeline backward from that date, so preparation starts with enough runway rather than becoming a last-minute scramble.
Why Choose Farahat & Co. for Your AUP Report
- Direct familiarity with the decision, including its prescribed procedures, sampling formula, and documentation standards, not a generic AUP template applied to a UAE-specific requirement
- Coordinated with your existing audit relationship, where we’re already your external auditor, this report is delivered as a natural extension of that engagement
- Integrated tax compliance view, connecting the AUP report directly to your broader Corporate Tax and Qualifying Free Zone Person position
- Established track record, over four decades supporting UAE businesses across audit, accounting, and tax compliance