Ministerial Decision No. 84 of 2025 on Audited Financial Statements

Ministerial Decision No. 84 of 2025: Regulations on Audited Financial Statements

The Ministry of Finance (MoF) has issued ministerial decision No. 84 of 2025 mandating the cases where taxpayers are required to prepare and maintain audited financial statements for UAE Corporate Tax purposes, including new procedural obligations for Tax Groups and Qualifying Free Zone Persons engaged in distribution activities in or from Designated Zones.

1. The new Decision requires all tax groups to prepare audited special-purpose financial statements (FS), thereby removing the requirement to prepare audited FS only if the consolidated revenue of the tax group exceeded AED 50 million. Further guidance will be issued on the preparation of the special-purpose financial statements.
2. The Decision requires that additional procedures must be complied with by Qualifying Free Zone Persons (QFZP) engaged in distribution activities in or from Designated Zones.
3. The previous requirement for taxpayers (who are not part of a tax group) to maintain an audited FS, if they are earning revenue exceeding AED 50 million or claiming QFZP benefits, continues to apply.
4. The Decision clarifies that, for the purposes of calculating the revenue threshold of AED 50 million for a non-resident person, only revenue derived through its permanent establishments and/or nexus in the UAE shall be taken into account.
5. The Decision replaces the earlier Ministerial Decision No. 82 of 2023, which will continue to apply to financial years commencing before 1 January 2025.
6. The new Decision is applicable to Tax periods on or after 1 January 2025.