Taxation

Complete Guide: UAE’s Mandatory Audits Under Corporate Tax Regulations

16/04/2025 No comments yet

Interpretation of Terms

Words and expressions in this Decision shall have the meanings specified in the Federal Decree-Law No. 47 of 2022 referred to above (“Corporate Tax Law”), unless the context otherwise requires.

Requirements for Audited Financial Statements

  1. For the purposes of Clause (2) of Article (54) of the Corporate Tax Law, all of the following shall prepare and maintain audited financial statements:
    a. A Taxable Person that is not a Tax Group and that derives Revenue exceeding AED 50,000,000 (fifty
    million United Arab Emirates dirhams) during the relevant Tax Period.
    b. A Qualifying Free Zone Person.
  2. For the purposes of Clause (2) of Article (54) of the Corporate Tax Law and Article (3) of Ministerial Decision No. 114 of 2023 referred to above, a Tax Group shall prepare and maintain audited special purpose financial statements in accordance with the form, procedures and rules specified by the Authority.
  3. Without prejudice to Clause (1) of this Article, a Qualifying Free Zone Person engaged in the activity of distribution of goods or materials in or from a Designated Zone in accordance with Ministerial Decision No. 265 of 2023 referred to above shall comply with any additional procedures prescribed by the Authority.
  4. For the purposes of calculating the Revenue threshold specified in Clause (1) of this Article for a Non Resident Person, only Revenue derived through Permanent Establishments and/or nexuses in the States hall be taken into account.

Repeal of Previous Decision

Ministerial Decision No. 82 of 2023 is repealed. However, to ensure a smooth transition, the repealed decision shall continue to govern Tax Periods that commenced before January 1, 2025. This provision ensures that prior tax obligations and reporting are not affected by the new decision.

Application to Tax Periods

This Decision outlines the commencement date for the applicability of the new regulations. Specifically, this Decision applies to Tax Periods which begin on or after January 1, 2025. Taxable persons must adhere to the guidelines from this date onwards to ensure compliance.

Publication and Effective Date

To ensure transparency and legal certainty, this Decision must be published. The official publication will be in the Official Gazette. Furthermore, the Decision shall be effective from the date it is issued, mandating immediate adherence to its provisions.

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