BDO Corporate Tax News

The Ministry of Finance has released a new Ministerial Decision that updates the audit requirements for corporate tax. The new decision repeals another decision dating from 2023, but which will remain applicable to tax periods commencing before 1 January 2025.

The following persons are required to maintain audited financial statements:

• Taxable persons (not part of a tax group) with annual revenues exceeding AED 50 million; and
• Qualifying free zone persons (QFZP), irrespective of revenue.

Tax groups are required to prepare and maintain audited special purpose financial statements in accordance with the form, procedures and rules specified by the Federal Tax Authorities (yet to be prescribed).

The decision also confirms that:

• QFZP engaged in the distribution of goods or materials in or from a designated zone must comply with any additional procedures prescribed by the tax authorities (yet to be prescribed); and
• For purposes of calculating the revenue threshold of a nonresident, only revenue derived through a permanent establishment and/or nexus in the UAE should be included.

Shivendra Jha
BDO in United Arab Emirates