UAE Corporate Tax Audited Financial Statements: What Finance Teams Need to Review 

Under UAE Corporate Tax requirements, certain Taxable Persons are required to prepare and maintain audited financial statements. 

Ministerial Decision No. 84 of 2025 applies to Tax Periods commencing on or after 1 January 2025. It sets the current audit framework for businesses above the AED 50 million Revenue threshold, Qualifying Free Zone Persons and Tax Groups, while FTA Decision No. 7 of 2025 prescribes the framework for Tax Groups to prepare Aggregated Financial Statements, supplemented by FTA Public Clarification CTP007.  

This article outlines the UAE Corporate Tax audited financial statements requirements, affected businesses, Tax Group reporting rules and records finance teams should review. 

What Ministerial Decision No. 84 of 2025 Changes 

Ministerial Decision No. 84 of 2025 replaces the previous audited financial statement rules for Tax Periods commencing on or after 1 January 2025. Ministerial Decision No. 82 of 2023 continues to apply to Tax Periods that commenced before that date. 

The applicable audit framework therefore depends on the start of the relevant Tax Period. This is particularly important for businesses with non-calendar financial years. 

For Tax Groups, MD 84 requires audited special-purpose financial statements for Corporate Tax purposes. FTA Decision No. 7 of 2025 prescribes these statements in the form of audited Aggregated Financial Statements. Underlying Tax Group members are not required to prepare audited standalone financial statements solely because they are members of the Tax Group. 

Which Businesses Need Audited Financial Statements? 

The requirements for UAE Corporate Tax audited financial statements depend on the status of the Taxable Person. The AED 50 million Corporate Tax audit threshold is based on Revenue rather than accounting profit or Taxable Income. 

For businesses operating close to the threshold, accurate Revenue recognition and period-end cut-off become important. A material year-end adjustment can affect the final Revenue position used to determine whether the audit requirement applies. 

What Finance Teams Need to Support for the Audit 

The audit starts with the accounting information used to prepare the financial statements. 

Finance teams should be able to support: 

• Revenue recognised during the relevant Tax Period; 

• period-end cut-off and material year-end adjustments; 

• major balance-sheet reconciliations; 

• financial statement schedules; 

• records used in the Corporate Tax calculation. 

Businesses close to the Revenue threshold may also monitor Revenue during the Tax Period to identify whether an audit is likely to be required. This is a practical reporting control rather than a separate monthly or quarterly testing requirement under MD 84. 

Audited financial statements and the Corporate Tax Return also serve different purposes. 

Financial statements provide the accounting starting point for determining Taxable Income. Corporate Tax adjustments may then be required before the final tax position is calculated. 

Finance teams therefore need records that support both the audited accounts and the Corporate Tax calculation. 

What Tax Groups Need to Prepare 

Tax Groups must prepare Aggregated Financial Statements using the standalone financial statements of the Parent Company and each Tax Group Subsidiary. 

The FTA framework generally requires income, expenses, unrealised gains and losses and other transactions between Tax Group members to be eliminated, subject to the specific exceptions in FTA Decision No. 7 of 2025. It also requires Tax Group members to apply uniform accounting policies to the information used in the aggregation process. 

The audited Aggregated Financial Statements must be submitted to the FTA no later than nine months from the end of the relevant Tax Period, unless another date is determined by the FTA. CTP007 further explains that they should be submitted when the Corporate Tax Return is filed. 

For businesses operating through multiple UAE entities, finance teams should review whether: 

• standalone financial information is complete for each Tax Group member; 

• accounting policies used for aggregation are consistent; 

• intra-group transactions can be identified; 

• intercompany balances support the elimination process; 

• aggregation adjustments are documented; and 

• reporting timelines are coordinated across Tax Group members. 

These controls support the preparation of the required financial statements. They should not be treated as separate statutory monthly reconciliation requirements. 

Aggregated Financial Statements and Consolidated Accounts Are Different 

Businesses that already prepare consolidated financial statements should not assume those accounts automatically satisfy the Corporate Tax requirement.  

Aggregated Financial Statements follow a special-purpose framework for Corporate Tax reporting. Key distinctions include: 

• Purpose: They are prepared specifically for the Tax Group’s Corporate Tax position. 

• Source information: They use the standalone financial statements of Tax Group members. 

• Eliminations:  Specified income, expenses, unrealised gains and losses and other transactions between Tax Group members are generally eliminated, subject to the applicable exceptions. 

• Accounting treatment: Aggregated Financial Statements generally follow IFRS or IFRS for SMEs, subject to specific treatments prescribed by FTA Decision No. 7 of 2025. Certain IFRS 3 and IFRS 10 adjustments do not flow into the Aggregated Financial Statements, while specified investment, equity and impairment balances are not eliminated. 

• Member audits: Individual Tax Group members are not automatically required to maintain audited standalone financial statements solely for Corporate Tax purposes. 

Existing consolidated accounts may still provide useful source information. However, the underlying records should support the separate aggregation and elimination requirements for the Tax Group. 

Separate company-law, licensing, banking, financing or shareholder requirements may also create independent audit obligations outside Corporate Tax. 

Audit Requirements for Qualifying Free Zone Persons 

The audit requirements for Qualifying Free Zone Persons apply regardless of Revenue. QFZPs should therefore prepare the financial statements and supporting records without relying on the AED 50 million threshold as the audit test. 

 For Tax Periods starting on or after 1 January 2026, a QFZP carrying on the Qualifying Activity of distributing goods or materials in or from a Designated Zone must separately obtain an agreed-upon procedures report where FTA Decision No. 6 of 2026 applies. This requirement is separate from the audited financial statement requirement under MD 84. 

Financial Reporting Readiness Checklist 

Before the audit and Corporate Tax filing process begins, affected businesses should review whether: 

• Revenue and year-end adjustments are supported where the AED 50 million threshold applies. 

• Material balances and financial statement schedules are reconciled and traceable to the general ledger. 

• Tax Group member accounts are complete and consistent for the relevant reporting period. 

• Intra-group transactions and intercompany balances are identifiable and support the required elimination process. 

• Aggregation adjustments are documented and supported by financial records. 

• Corporate Tax working papers reconcile to the underlying accounts. 

• Applicable financial statement attachment or submission requirements have been confirmed. 

• Any separate QFZP reporting procedures have been assessed where relevant. 

These are practical readiness controls. They do not create additional statutory obligations beyond the applicable Corporate Tax legislation and FTA procedures. 

Conclusion 

UAE Corporate Tax audited financial statements requirements depend on the Taxable Person, Revenue position and relevant Tax Period. Finance teams need records that support the applicable audit requirement, Tax Group aggregation where relevant and the Corporate Tax calculation. 

Businesses should confirm the applicable requirement early and resolve accounting, reconciliation or documentation gaps before the audit and Corporate Tax filing process begins. 

About SimplySolved 

As an FTA Approved Tax Agency with ISO 9001, ISO 27001 and ISO 42001 certifications, SimplySolved supports UAE businesses with Corporate Tax advisory, accounting, financial reporting readiness, Corporate Tax filing and Tax Group reporting preparation. 

Support may include reviewing Revenue records, Tax Group financial information, intercompany reconciliations, Corporate Tax working papers and documentation supporting financial reporting. 

SimplySolved’s advisory and accounting role remains separate from the work of an independent auditor. 

Partner with SimplySolved to review whether the business’s accounting records and financial reporting process support its Corporate Tax requirements. 

This article is provided for general informational purposes only and should not be relied upon as binding tax, legal, accounting or financial advice. Professional advice should be obtained based on the specific circumstances of the business and UAE legislation in force at the relevant time.