KGRN Chartered Accountants

Outsourcing a service does not outsource oversight.

From 15 September 2026, the IIA’s Third-Party Topical Requirement becomes mandatory when third-party risk is applicable to an internal audit assurance engagement.

For UAE businesses relying on logistics partners, cloud providers, payment gateways and specialist contractors, this raises the standard for how third-party risks are assessed.

Internal audit teams will need to evaluate areas including:
✓ Third-party identification and risk classification
✓ Due diligence and contracting
✓ Performance and risk monitoring
✓ Business continuity
✓ Secure termination, access removal and data handling

The requirement does not mandate a vendor audit for every organisation. However, when third-party risk falls within an assurance engagement, its applicability and any exclusions must be properly documented.

Is your internal audit methodology ready?

Connect with our Internal Audit team.

Corporate Desk: +971 45 570 204
For Support:: [email protected]

If your business provides SaaS, cloud, payroll, fund administration, data processing or other outsourced services to DIFC or ADGM regulated firms, independent control assurance is becoming increasingly relevant.

Neither the DFSA nor the FSRA requires every service provider to obtain a SOC 1 or SOC 2 report. However, regulated firms are expected to conduct due diligence, monitor outsourced providers and assess relevant third-party risks.

A SOC report can help demonstrate the strength of your control environment and support client due diligence without requiring extensive direct testing of your systems.

SOC 1 is generally relevant where your services affect financial reporting controls.
SOC 2 is typically more relevant for technology, security, availability, confidentiality and data-related risks.
KGRN supports DIFC and ADGM service organizations with SOC scoping, readiness assessments, gap analysis, remediation planning and assurance readiness.

Speak to KGRN about your SOC readiness.

Returns and refunds are changing under UAE eInvoicing.

Credit notes must be issued electronically in the required structured format, not handled only through PDFs, spreadsheets or manual entries.

Finance teams should ensure:

* Credit notes link correctly to original invoices.
* Partial adjustments, returns and discounts are accurately reflected.
* Credit notes are transmitted within the required timelines.
* Different adjustment scenarios are mapped to the right workflows and reasons.

Late transmission may attract a penalty of AED 100 per credit note, capped at AED 5,000 per month.

Is your end-to-end credit-note process ready?

👉 kgrnaudit.com/uae-e-invoicing-solution/

The ICFR transition window is closing.

The UAE’s Securities and Commodities Authority has extended the trial phase for Internal Control over Financial Reporting (ICFR) until 31 December 2026. From 1 January 2027, listed companies move into full mandatory application and public disclosure.

During 2026, listed companies are expected to evaluate their internal controls, prepare their ICFR assessment and obtain an external auditor’s opinion on control effectiveness. The ICFR scope should also form part of the FY2026 external audit engagement.

For Boards, CFOs and Audit Committees, the priority now is clear: identify control gaps, complete testing and address deficiencies before mandatory disclosure begins.

Is your ICFR framework ready for 2027?
Speak to KGRN’s Audit & Assurance team.

AED 40 million is not the only Transfer Pricing threshold businesses need to watch.

Under the UAE Corporate Tax Return rules, if aggregate transactions with Related Parties exceed AED 40 million in a Tax Period, the Related Party Schedule must be completed.

Once that threshold is crossed, transaction categories exceeding AED 4 million must be disclosed separately.

But disclosure thresholds are only part of the picture. UAE Transfer Pricing rules apply to transactions with Related Parties and Connected Persons, and the arm’s-length principle applies regardless of whether these disclosure thresholds are exceeded.

Businesses should therefore review not just whether they cross a reporting threshold, but whether their related-party pricing can be commercially justified and supported.

Speak to KGRN’s Tax Team for Transfer Pricing support.

FTA Decision No. 4 of 2026 is already in effect. Is your record-keeping process ready for an FTA request?

From 30 July 2026, businesses must ensure their accounting records and commercial books are complete, legible and accessible to the FTA when requested.

Where records are maintained electronically, businesses may also be required to provide access to the relevant system.

The focus now is not preparation. It is ensuring your existing accounting and record-keeping processes can meet these requirements when required.

Review your records. Review your systems. Stay FTA-ready.

Speak to KGRN’s Tax Team for support.

Your ADGM company may be audit-exempt under ADGM Companies Regulations. But UAE Corporate Tax changes the answer.

To benefit from the 0% Corporate Tax rate on Qualifying Income as a Qualifying Free Zone Person (QFZP), the company must prepare and maintain audited financial statements, regardless of its size or revenue.

This requirement applies even where revenue is below AED 50 million.

Where an ADGM company prepares general-purpose audited financial statements, those statements must be filed with the ADGM Registration Authority, subject to the applicable filing requirements and exceptions.

For private companies with a December 31 year-end, the annual accounts filing deadline will generally be September 30, 2026.

Any auditor appointed to audit an ADGM company’s annual accounts must be an ADGM-registered auditor.

Speak with KGRN to assess your audit and filing requirements and ensure your ADGM business remains compliant.

🔍 Corporate Tax Consulting Services
📞 +971 4 557 0204

Source: Guidance on Financial Statements for ADGM Qualifying Free Zone Persons

For ship management companies, UAE VAT treatment depends on more than where the vessel is operating.

The correct treatment can vary based on factors such as:
▪️ The nature of the service provided
▪️ Where the customer is established
▪️ The contractual relationship between the parties
▪️ The applicable place-of-supply rules
▪️ Whether the service qualifies for zero-rating under UAE VAT regulations

A vessel operating outside the UAE does not automatically mean every related service is zero-rated.

Getting the VAT treatment right before invoicing can help avoid incorrect tax positions, adjustments and compliance issues later.

KGRN can assist maritime businesses in reviewing the VAT treatment of ship management and related services.

kgrnaudit.com/vat-consultancy-services-in-the-uae/

Get to know the other side of Mr. Gopu Rama Naidu! ✨

You may know him as the founder of KGRN. But do you know the farmer, risk-taker, and resilient leader behind the firm?

In this candid conversation with ICAI Dubai, our founder CA Gopu Rama Naidu CPA FCA ACCA, shares a side rarely seen in boardrooms. From his farming roots and the career setback in 2007 that led to the birth of KGRN to building a cross-border practice and navigating the evolving world of audit and taxation. 🌍

Watch the full episode: https://www.youtube.com/watch?v=nTSjBZeRtZ0

For tax, audit, and assurance, get in touch with experts: Audit Firms in Dubai UAE | Accounting Services in Dubai

Reach KGRN on WhatsApp at +971 54 586 4906