Key takeaways
- A UAE company that is not part of a tax group must prepare and maintain audited financial statements for corporate tax if its revenue is above AED 50 million in the tax period (Ministerial Decision No. 84 of 2025, checked November 2026).
- Every Qualifying Free Zone Person must prepare and maintain audited financial statements for corporate tax, whatever its revenue.
- Every tax group must prepare and maintain audited special purpose financial statements, whatever the group's revenue; the FTA has set the format and a nine-month submission window.
- A UAE company below AED 50 million in revenue that is neither a Qualifying Free Zone Person nor a tax group has no corporate tax audit requirement under Ministerial Decision No. 84 of 2025, although a free zone authority, bank or investor may still ask for audited accounts.
- The rules apply to tax periods starting on or after 1 January 2025; Ministerial Decision No. 82 of 2023 still governs periods that started earlier.
Which companies need audited accounts for UAE corporate tax?
Three groups must have audited financial statements: taxable persons outside a tax group with revenue above AED 50 million in the tax period, all Qualifying Free Zone Persons, and all tax groups. The source is Article 2 of Ministerial Decision No. 84 of 2025, issued under Article 54(2) of Federal Decree-Law No. 47 of 2022.
| Type of taxable person | Audited accounts required? | Basis |
|---|---|---|
| Company or other taxable person outside a tax group, revenue above AED 50 million in the tax period | Yes | Ministerial Decision No. 84 of 2025, Article 2(1)(a) |
| Qualifying Free Zone Person, any revenue | Yes | Ministerial Decision No. 84 of 2025, Article 2(1)(b) |
| Tax group, any revenue | Yes, audited special purpose financial statements | Ministerial Decision No. 84 of 2025, Article 2(2); FTA Decision No. 7 of 2025 |
| Any other taxable person with revenue of AED 50 million or less | No corporate tax audit requirement | Not covered by Article 2 |
Figures checked November 2026. The Minister can change these categories by a new decision, so confirm against the Ministry of Finance site before relying on them for a filing.
AED 50 million: revenue in a tax period above which a taxable person outside a tax group must prepare and maintain audited financial statements for corporate tax. Source: Ministerial Decision No. 84 of 2025, Article 2(1)(a), checked 01 November 2026.
How is the AED 50 million revenue test applied?
The test looks at the company's revenue in the relevant tax period, and the audit requirement applies only where that revenue is above AED 50 million. The decision says the figure is revenue "exceeding AED 50,000,000", so a company with exactly AED 50 million is outside it.
For a non-resident person, only revenue earned through a permanent establishment or nexus in the UAE counts towards the threshold. Say a foreign group has a UAE branch that books AED 30 million a year, while the group earns AED 400 million worldwide: the test is run on the AED 30 million. That is an illustration, not a client case.
Do free zone companies need audited accounts for corporate tax?
A free zone company needs audited accounts for corporate tax if it is a Qualifying Free Zone Person, and the revenue threshold does not matter in that case. A free zone company that is not a Qualifying Free Zone Person is tested like any other taxable person, so it needs an audit only above AED 50 million.
A Qualifying Free Zone Person that distributes goods or materials in or from a Designated Zone must also follow any further procedures the FTA prescribes (Article 2(3) of the decision). Free zones differ on their own audit rules for licence renewal, and those are separate from corporate tax, so check your free zone authority as well.
What do tax groups have to do?
A tax group must prepare audited special purpose financial statements for every tax period, whatever its revenue. Under FTA Decision No. 7 of 2025, these combine the standalone statements of the parent and each subsidiary with intra-group transactions eliminated.
The statements must be audited under International Standards on Auditing, prepared under IFRS or IFRS for SMEs with uniform policies, and presented in UAE dirhams. The audited aggregated statements must be submitted to the FTA within nine months of the end of the tax period. The earlier rule, which applied only above AED 50 million of consolidated revenue, no longer applies to periods starting on or after 1 January 2025.
When do the rules apply, and do you file the audit with your return?
The rules apply to tax periods starting on or after 1 January 2025; the decision took effect on its date of issue, 25 March 2025. The obligation is to prepare and maintain the audited statements. Article 54(1) of Federal Decree-Law No. 47 of 2022 lets the FTA ask a taxable person to submit its financial statements in the form and timeline it prescribes, so you should expect to produce them on request.
Tax groups are the exception, with the nine-month submission window above. Keep the underlying records for seven years after the end of the tax period (Article 56). If you'd rather not track these dates by hand, the free UAE compliance calendar lists your company's tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.
What most guides don't tell you
- The threshold is tested every tax period. Revenue is measured for the relevant tax period, so a company that crosses AED 50 million in one year picks up the requirement for that period. Plan the auditor's appointment during the year rather than after the year-end.
- Qualifying Free Zone Person status brings the audit with it. The requirement follows the status, not the size of the business. If you are weighing whether to claim the 0% regime, add the cost of an annual audit to the comparison.
- A free zone audit and a corporate tax audit are different obligations. One set of audited accounts may well serve both, but the free zone authority and the corporate tax rule each set their own requirements, so ask your auditor to confirm the scope covers both.
- Tax group audits are a different product. A tax group's audit covers aggregated special purpose statements, so subsidiary-level audits do not automatically satisfy it. Whether standalone audits are also needed depends on your other obligations; agree this with the auditor early.
Which deadlines apply to your company?
Whether you need an audit or not, corporate tax, VAT and licence dates all run on different clocks. The free UAE compliance calendar maps them for your company, personalised from a few questions, as a PDF and calendar file.
Frequently asked questions
Do I need audited financial statements for corporate tax? Only if your revenue is above AED 50 million in the tax period, you are a Qualifying Free Zone Person, or you are a tax group (Ministerial Decision No. 84 of 2025). Otherwise corporate tax does not require an audit, although a bank, investor or free zone authority may.
What accounting standard do I need to use for corporate tax? Article 20 of Federal Decree-Law No. 47 of 2022 requires taxable income to be worked out from financial statements prepared under accounting standards accepted in the UAE. FTA guidance from November 2023 points to IFRS, with IFRS for SMEs available to smaller businesses, so check the guide against your revenue.
Can I use cash basis accounting for corporate tax? Sometimes: Article 20(5)(a) lets the Minister set the circumstances and conditions in which a person may use the cash basis. Confirm the current conditions on the Ministry of Finance site before you elect it.
What records do I need to keep for corporate tax and for how long? A taxable person must keep the records and documents that support its tax return for seven years after the end of the relevant tax period (Article 56 of Federal Decree-Law No. 47 of 2022). An exempt person must keep records showing its exempt status for the same period.
About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn
Sources
- Ministerial Decision No. 84 of 2025 on Audited Financial Statements, Ministry of Finance
- Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, Ministry of Finance
- Federal Tax Authority Decision No. 7 of 2025, audited special purpose financial statements for tax groups
- Ministerial Decision No. 82 of 2023, Ministry of Finance (applies to tax periods that started before 1 January 2025)
Last checked: 01 November 2026
This is general information, not tax or legal advice for your specific situation.