Which companies must prepare audited financial statements for Corporate Tax?

Article 2 – Requirements for Preparing and Maintaining Audited Special Purpose Financial Statements for a Tax Group 1. For the purposes of Clause 1 of Article 54 of the Corporate Tax Law referred to above, a Tax Group shall prepare special purpose financial statements in the form of Aggregated Financial Statements in line with the framework specified in Article 3 of this Decision. Federal Tax Authority Decision No. 7 of 2025 – Unofficial translation 2 2. For the purposes of Clause 2 of Article 54 of the Corporate Tax Law and Clause 2 of Article 2 of Ministerial Decision No. 84 of 2025, the Aggregated Financial Statements of the Tax Group must be audited under a special purpose framework in accordance with the relevant International Standards on Auditing (‘’ISA’’). 3. For the purposes of Clause 1 of Article 54 of the Corporate Tax Law, the audited Aggregated Financial Statements of the Tax Group must be submitted to the Authority no later than (9) nine months from the end of the relevant Tax Period, or such other date as determined by the Authority.

Article 54 – Financial Statements 1. The Authority may, by notice or through a decision issued by the Authority, request a Taxable Person to submit the financial statements used to determine the Taxable Income for a Tax Period in the form and manner and within the timeline prescribed by the Authority. 2. The Minister may issue a decision requiring categories of Taxable Persons to prepare and maintain audited or certified financial statements. 3. For the purposes of Clause 1 of this Article, the Authority may request a partner in an Unincorporated Partnership to provide financial statements showing all of the following: a. The total assets, liabilities, income and expenditure of the Unincorporated Partnership. b. The partner’s distributive share in the Unincorporated Partnership’s assets, liabilities, income and expenditure.

Article 2 – Preparing and Maintaining 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 State shall be taken into account.

Any amount quantified in foreign currency must be converted to AED at the applicable exchange rate set by the Central Bank of the UAE.62 For further information on the foreign currency conversion under the Corporate Tax Law, refer to FTA Decision No. 13 of 2023. For further information on the conditions and application of IFRS, IFRS for SMEs, Cash Basis of Accounting and preparation of Financial Statements, see the Corporate Tax Guide on Accounting Standards and Interaction with Corporate Tax. For information on preparation of Financial Statements of Tax Groups, see the Corporate Tax Guide on Tax Groups. 6.2. Audit 6.2.1 Have the Financial Statements been audited? ‘Audit’ refers to an opinion issued by an independent external auditor. For entities incorporated in the UAE, (or operating in the UAE through a Permanent Establishment situated in the UAE), the audit must be performed by a UAE-registered auditor, pursuant to Federal Law No. 41 of 2023 on the Regulation of the Auditing Profession and its amendments, read together with Ministerial Resolution No. 403 of 2015 concerning the International Standards for the Auditing Profession, or any other applicable legislation. Answer ‘Yes’ or ‘No’ as applicable. Taxable Persons deriving Revenue exceeding AED 50 million during the relevant Tax Period and all Qualifying Free Zone Persons (irrespective of the level of Revenue) are required to prepare and maintain audited Financial Statements for the purposes of the Corporate Tax Law.63 If you are a Taxable Person that falls in any of these categories, this field will be pre-populated as ‘Yes’. 6.2.2 What was the audit opinion? If you answer ‘Yes’ to question 6.2.1, this question will be visible. Select the relevant answer from the dropdown menu. This relates to whether the audit opinion was qualified or unqualified. 62 Article 43 of the Corporate Tax Law. 63 Article 2 of Ministerial Decision No. 82 of 2023. Corporate Tax Guide | Tax Returns | CTGTXR1 54