New audited financial statements requirements in the UAE have become a critical compliance pillar for businesses operating under the corporate tax regime in 2026. Under Ministerial Decision No. 84 of 2025, specific categories of taxable persons must prepare and maintain audited financial records to ensure transparency and regulatory adherence. Understanding these obligations is essential for maintaining UAE corporate tax compliance and avoiding penalties.
The UAE’s updated audit framework, effective from January 2026, mandates that qualifying businesses maintain verifiable financial records and prepare annual statements for statutory review. Audited financial statements UAE regulations are governed by Article 54(2) of Federal Decree-Law No. 47 of 2022, which empowers the Minister of Finance to define taxpayer categories requiring audited financials. These requirements align with the Federal Tax Authority’s (FTA) mission to establish a disciplined, transparent business environment.
The new decision provides several clarifications on revenue thresholds, tax group obligations, and specific entity classifications while maintaining consistency with international accounting standards
Who Must Prepare Audited Financial Statements?
Taxable Persons with Revenue Exceeding AED 50 Million: Any taxable person, including businesses or natural persons, generating annual revenue exceeding AED 50 million during the tax period, must prepare mandatory audited financial statements. This threshold applies to entities not registered as part of a tax group. For non-resident persons, only revenue connected to a Permanent Establishment or nexus in the UAE is considered when calculating the AED 50 million threshold.
Qualifying Free Zone Persons (QFZPs) : Audited financial statements UAE requirements apply to all Qualifying Free Zone Persons, regardless of revenue levels. QFZPs seeking to benefit from the 0% corporate tax rate on qualifying income must maintain audited financials to demonstrate compliance with economic substance requirements, proper income segregation, and adherence to the De-Minimis threshold. This audit obligation serves as a verification mechanism for the Federal Tax Authority to confirm the entity’s eligibility for preferential tax treatment.
Tax Groups and Special Requirements : Tax groups face unique obligations under the FTA tax group rules. According to Article 3 of Ministerial Decision No. 114 of 2023, tax groups must prepare UAE tax group financial statements in the form of audited aggregated financial statements. These statements are created by aggregating the annual standalone financial statements of all tax group members.
UAE Tax Group Financial Statements: Aggregated Requirements
Audited aggregated financial statements must include four primary components:
- Aggregated statement of financial position
- Aggregated statement of profit or loss
- Aggregated statement of other comprehensive income
- Aggregated statement of changes in equity
Tax groups whose consolidated revenue exceeds AED 50 million annually, or groups containing at least one QFZP member, must have these aggregated financial statements audited by a UAE-licensed auditor. This requirement ensures the Federal Tax Authority can verify the group’s tax position accuracy and UAE corporate tax compliance.
Corporate Tax Compliance Timeline and Record-Keeping
Businesses must register for UAE corporate tax via the EmaraTax portal when turnover exceeds AED 1 million. Tax returns must be filed within nine months of the tax period end, typically by September 30. All financial records must be retained for seven years after the relevant tax period.
Meeting these deadlines requires efficient coordination between accounting and tax teams, particularly for entities preparing new audited financial statements for the first time. The 2026 framework emphasizes real financial transparency, consistent documentation, and alignment with both federal tax regulations and Emirate-level compliance rules.
Who is Exempt from Audit Requirements?
Entities not meeting the AED 50 million revenue threshold and those not classified as QFZPs are generally exempt from mandatory audit obligations. However, these businesses must still maintain accurate financial records and may choose voluntary audits for business credibility purposes or banking relationships.
Non-resident persons whose UAE-sourced revenue through Permanent Establishments falls below the AED 50 million threshold are also exempt. The clarification on non-resident revenue calculation provides significant relief for international businesses with limited UAE operations.
Ensuring Audit Compliance in 2026
The new audited financial statements requirements represent a fundamental shift in UAE’s corporate tax landscape, emphasizing transparency and regulatory discipline. Whether your business falls under the AED 50 million threshold, operates as a Qualifying Free Zone Person, or forms part of a tax group, understanding these UAE corporate tax compliance obligations is essential for successful operations in 2026.
Take Action Now: At My Taxman, we specialize in comprehensive tax consultancy services including corporate tax compliance, VAT services, accounting, bookkeeping, and audit preparation. Our expert team ensures your business meets all FTA tax group rules and audit requirements while optimizing your tax position. Contact us today at +971-543223140 to schedule a consultation and ensure your 2026 financial statements meet all regulatory standards. Don’t wait until the filing deadline proactive compliance starts now.
Frequently Asked Questions
Q1: What is the revenue threshold for mandatory audited financial statements in UAE 2026?
Taxable persons with annual revenue exceeding AED 50 million must prepare audited financial statements, excluding those registered as tax groups.
Q2: Do all Qualifying Free Zone Persons need audited financial statements?
Yes, all QFZPs must maintain audited financial statements regardless of revenue levels to benefit from the 0% corporate tax rate on qualifying income.
Q3: What are aggregated financial statements for tax groups?
Aggregated financial statements are special-purpose financials created by combining standalone statements of all tax group members, including statements of financial position, profit or loss, comprehensive income, and changes in equity.
Q4: When do tax groups need audited aggregated financial statements?
Tax groups must audit their aggregated financial statements if consolidated revenue exceeds AED 50 million annually or if any member is a Qualifying Free Zone Person.
Q5: How is revenue calculated for non-resident persons?
For non-resident persons, only revenue derived through Permanent Establishments or nexuses in the UAE counts toward the AED 50 million audit threshold.
Q6: What are the record retention requirements for audited financial statements?
All financial records and audited statements must be retained for seven years after the relevant tax period.
Q7: Who can audit financial statements for UAE corporate tax purposes?
Only UAE-licensed auditors can audit financial statements for corporate tax compliance purposes.
Q8: When must UAE corporate tax returns be filed?
Tax returns must be filed within nine months of the tax period end, typically by September 30 for most businesses.
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