The UAE Ministry of Finance has issued Ministerial Decision No. 84 of 2025, dated 22 April 2025, providing greater clarity on who is required to prepare and submit audited financial statements under the UAE Corporate Tax regime.

This decision is an important update for businesses operating in the UAE, especially in light of the implementation of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.

Key Highlights of Ministerial Decision No. 84 of 2025

Under the Ministerial Decision, the following categories of Taxable Persons are mandated to prepare and maintain audited financial statements for Corporate Tax purposes:

1. Taxable Persons with Revenue exceeding AED 50 million during the relevant Tax Period.
2. Qualifying Free Zone Persons, irrespective of their revenue level.

This means that businesses falling within either of the two categories must ensure their financial statements are audited by a licensed auditor in accordance with applicable accounting and auditing standards.

Effective Date

This requirement applies to Tax Periods starting on or after 1 June 2023. Hence, businesses must review their financial reporting obligations for the current and upcoming tax periods to ensure compliance.

Why Is This Important?

• Audited financial statements enhance transparency and reliability of tax filings.
• Non-compliance could potentially lead to penalties or rejection of tax positions, especially for Free Zone entities seeking to retain their 0% Corporate Tax rate as a Qualifying Free Zone Person.
• The requirement is also aligned with broader efforts to improve financial governance and regulatory compliance in the UAE.

Our Assistance

We assist companies in the UAE with:

• Preparation and audit of financial statements,
• Determination of applicability of the audit requirement,
• Corporate Tax registration and compliance,
• Advisory for Free Zone and mainland companies.

If your business falls under either of the categories mentioned above or you are unsure of your obligations, feel free to contact our team for guidance and support.