ABU DHABI: The Ministry of Finance has announced changes to its rules on audited financial statements for corporate tax, easing compliance for businesses operating under a tax group.
The updated Ministerial Decision — amending Decision No. 82 of 2023 — outlines clearer requirements for preparing and maintaining audited financial statements under the UAE’s Corporate Tax Law, set out in Federal Decree-Law No. 47 of 2022.
Under the new rules, all tax groups must now prepare audited special-purpose aggregated financial statements. However, to reduce the reporting burden, the individual members of each tax group will not be required to maintain separate, audited stand-alone accounts. This move is aligned with the UAE’s reputation as a pro-business and low-bureaucracy environment.
The Federal Tax Authority (FTA) is expected to release further guidelines soon on how these aggregated statements should be prepared.
In a significant clarification, the new decision also covers Qualifying Free Zone Persons involved in the distribution of goods or materials within or from a Designated Zone. The FTA will also provide detailed guidance on this aspect to ensure these businesses can clearly understand how to benefit from the Corporate Tax Free Zone regime, which is designed to support economic activity in key sectors.
These changes are part of ongoing efforts by the Ministry of Finance to streamline tax reporting obligations and maintain a transparent, investment-friendly climate as the UAE implements its first-ever federal corporate tax.
The announcement offers businesses greater clarity and prepares the groundwork for simpler compliance processes, especially for companies operating in groups or free zones.
