Amendments to the decision of the audited financial statements for corporate tax purposes

The Ministry of Finance announced amendments to Ministerial Resolution No. 82 of 2023 regarding the audited financial statements for corporate tax purposes.

According to a press release issued by the Ministry today, the decision clarifies the requirements for preparing and preserving financial statements in accordance with the decree of a federal law No. 47 of 2022 regarding companies and business tax “corporate tax law”, within the framework of its efforts to enhance transparency and ensure the application of the criteria for preparing financial reports for companies operating in the United Arab Emirates under the corporate tax system.

The new decision determines clear requirements for preparing the audited financial statements for tax groups for corporate tax purposes, as all tax groups will require the preparation of an audited financial lists with a special purpose.

In order to alleviate the burden of compliance with tax groups and within the framework of the UAE’s keenness to consolidate a business environment for companies, the main members of the tax group will not be required to prepare separate financial data.

The Federal Tax Authority will also issue more guidelines regarding the framework for preparing the collected financial statements with a special purpose for corporate tax purposes.

The new decision also creates clarification procedures for qualified persons in charge of the free zone who engage in the activity of distributing goods or materials in or from the specified area.

The Federal Tax Authority will issue detailed instructions in this regard, and these guidelines will ensure that distribution companies can benefit from the advantages of the free zones system for corporate tax.