SHAMS accounting, VAT and Corporate Tax services
Fixed-fee bookkeeping, VAT and Corporate Tax for SHAMS companies — with the free zone 0% position tested every year, not assumed.
Sharjah Media City Free Zone (SHAMS) is in Sharjah. It is popular with media, creative and consulting businesses and freelancers. Whatever the licence, the tax and accounting obligations are the same federal rules — and a few points are specific to free zone companies.
What a SHAMS company has to do
| Corporate Tax registration | Within 3 months of incorporation (companies set up on or after 1 March 2024) |
| Corporate Tax return | Every year, within 9 months of the financial year end — even at 0% |
| 0% free zone rate | Only for a Qualifying Free Zone Person that meets every condition, including audited financial statements |
| VAT | Registration once taxable supplies exceed AED 375,000; quarterly returns after that |
| Records | Kept for 7 years for Corporate Tax and at least 5 years for VAT |
| Free zone audit | Depends on the licence and activity — we confirm the current SHAMS requirement for your company |
The points SHAMS companies most often get wrong
- Assuming 0% is automatic. The free zone rate applies only to qualifying income, and only if every condition is met — substance in the free zone, audited accounts, transfer-pricing compliance and the de minimis test. See the 0% conditions explained.
- Customers outside the free zone: income from mainland or overseas customers is generally non-qualifying for the 0% rate unless it comes from a qualifying activity, so revenue needs to be tracked by customer type from day one.
- Consulting and IT services. These are not qualifying activities, so income from customers outside the free zone — including overseas clients — is generally non-qualifying. Above the de minimis limit, the company loses the 0% rate altogether and is taxed at the standard rates.
- Export sales and VAT. Zero-rated sales to overseas clients still count towards the VAT registration threshold.
How we help SHAMS companies
- Monthly bookkeeping in Zoho Books (included in your plan), with revenue tagged as qualifying or non-qualifying from the start.
- A yearly Qualifying Free Zone Person review, the Corporate Tax return and coordination with your auditor.
- VAT registration and quarterly returns, including the zero-rating position for overseas customers.
- Our cross-border tax experience helps where owners, customers or group companies are outside the UAE, and we support you with FTA queries, voluntary disclosures and penalty matters if they arise.
Still choosing a free zone? Our sister team's SHAMS company setup guide covers licences, visas and set-up.
Sources: Federal Decree-Law No. 47 of 2022 on Corporate Tax (Articles 18 and 56); Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023 (qualifying income and activities); FTA Corporate Tax Guide on Free Zone Persons (CTGFZP1); FTA Decision No. 3 of 2024; Federal Decree-Law No. 8 of 2017 on VAT, as amended.
Frequently asked questions
Does a SHAMS company pay 0% Corporate Tax?
Only on qualifying income, and only if the company is a Qualifying Free Zone Person that meets every condition. Non-qualifying income is taxed at 9%, and if it exceeds the de minimis limit the company loses the 0% rate on all its income. We test the position each year before the return is filed.
Does a SHAMS company need audited accounts?
A company claiming the 0% free zone rate must maintain audited financial statements. Separately, the free zone authority may have its own audit or reporting requirement depending on the licence; we confirm it for your company.
Can you work with my SHAMS company if I live outside the UAE?
Yes. Documents are shared through our client portal and the books are kept in cloud software, so most owners never need to visit us.
Ready to hand over your books and returns?
Tell us about your company and we'll send a fixed-fee proposal within one business day.