Ministerial Decision No. 84 of 2025

The UAE Ministry of Finance has introduced Ministerial Decision No. 84 of 2025, updating the existing audit requirements for companies under the Federal Decree-Law No. 47 of 2022 on corporate taxation read with Ministerial Decision 82 of 2023 (which is now repealed but would continue to apply to tax periods that commenced before 1 January 2025). This new decision strengthens financial transparency and compliance as the UAE’s corporate tax regime matures.

Based on the new decision, the following taxable persons must maintain audited financial statements: -

• Revenue over AED 50 million: All taxable persons (not part of Tax Group) with annual revenues exceeding AED 50 million.
• Qualifying Free Zone Persons (QFZPs) Audit Requirement: QFZPs, regardless of revenue, must provide audited statements to maintain their 0% corporate tax rate.
• Tax Groups: All Tax Groups are required to prepare and maintain audited special purpose financial statements in accordance with the form, procedures and rules specified by the Authority (yet to be prescribed).

In addition to the above, the new decision further lays down the following additional requirements/clarifications:

• A QFZP engaged in the activity of distribution of goods or materials in or from a Designated Zone shall comply with any additional procedures prescribed by the Authority (yet to be prescribed)
• It is also clarified that for the purpose of calculating Revenue threshold for a Non-Resident person, only Revenue derived through Permanent Establishment and/or nexus in the state should be considered.

Who Is Affected?

• QFZP engaged in the activity of Distribution from a Designated Zone will have to comply with additional procedures which are yet to be prescribed by the Authority.
• All Tax Groups will have to prepare and maintain audited special purpose financial statements irrespective of the revenue of the Tax Group.

Compliance Timeline

As mentioned above, the new decision and audit rules will apply to tax periods starting from 1 January 2025 and the erstwhile decision would continue to apply for tax periods beginning before 1 January 2025.

In case you require any assistance or further insights, you may please reach out to our team. We will be happy to assist.