Audited Financial Statements for the Purpose of Taxation of Corporations and Businesses

Audited Financial Statements for the Purpose of Taxation of Corporations and Businesses

by | Apr 16, 2025

Ministry of Finance (MoF) has released Ministerial Decision No 84 of 2025 effective 01 January 2025. The Decision repeals the Ministerial Decision No 82 of 2023 issued earlier from 01 January 2025 onwards. Accordingly, the earlier MD continues to apply for tax periods commenced before 01 January 2025

The key takeaway for Taxpayers are summarized below:

  1. Mandatory Audited Financial Statements: The following entities must prepare and maintain audited financial statements:
  • Taxable Persons (excluding members of a Tax Group) with revenue exceeding AED 50 million during the relevant tax period.
  • Qualifying Free Zone Persons.
  1. Tax Groups: Must prepare audited special purpose financial statements as per the format, procedures and rules specified by the Authority.
  2. Designated Zone Distributors: Qualifying Free Zone Persons engaged in the distribution of goods or materials in/from a Designated Zone must adhere to any additional procedures prescribed by the Authority.
  3. Revenue Threshold for Non-Residents: For non-resident persons, only revenue earned through permanent establishments or nexuses in the UAE shall be considered for calculating the AED 50 million threshold.

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