Attention Businesses with Over AED 50 Million Turnover:
The implementation of Corporate Tax in the UAE has brought about significant changes, and businesses with substantial turnover need to pay close attention to a crucial new requirement. With the recent issuance of Ministerial Resolution No. (84) of 2025, a clear mandate has been established: companies whose annual revenue exceeds AED 50 million are now required to submit Audited Financial Statements when filing their Corporate Tax returns.
At TFAB Accounting and Bookkeeping, your trusted partner in navigating the UAE’s financial regulations, we want to ensure you are fully aware of this critical obligation and prepared for the upcoming tax periods starting in 2025.
The AED 50 Million Threshold: What You Need to Know
Ministerial Resolution No. (84) of 2025 explicitly states that any taxable person operating outside of a tax group, whose annual revenue surpasses AED 50 million during the relevant tax period, is now legally obligated to have their Financial Statements audited by an approved audit firm within the UAE.
This isn’t just a suggestion; it’s a mandatory requirement for Corporate Tax compliance. This threshold clearly targets larger individual businesses operating within the UAE, emphasizing the need for robust financial reporting and independent verification for entities with significant economic activity.
Why This Requirement Matters for Your Business
This new mandate has several important implications for companies exceeding the AED 50 million revenue mark:
- Mandatory Compliance: Failing to provide audited financial statements when required will likely result in non-compliance with the UAE Corporate Tax Law, potentially leading to penalties and other regulatory issues.
- Increased Scrutiny: Businesses with higher turnover naturally attract greater scrutiny from tax authorities. Audited financial statements provide a higher level of assurance regarding the accuracy and reliability of your reported financial information.
- Foundation for Accurate Tax Calculation: An independent audit ensures that your taxable profits are calculated based on fairly presented financial data, minimizing the risk of disputes with the Federal Tax Authority (FTA).
- Demonstrating Financial Prudence: Submitting audited financial statements showcases your commitment to financial transparency and sound business practices.
Key Steps for Businesses Above the Threshold
If your company’s annual revenue exceeds AED 50 million, here are the essential steps you need to take:
- Engage an Approved Auditor: The first and most crucial step is to partner with a reputable audit firm that is registered and approved to operate within the UAE. Ensure they have the expertise in statutory audits and are familiar with the requirements of the UAE Corporate Tax Law.
- Ensure Robust Financial Record-Keeping: Maintaining accurate and comprehensive financial records throughout the tax period is paramount for a successful audit. This includes all transactions, expenses, and income.
- Prepare Financial Statements According to Prescribed Standards: Your financial statements must be prepared in accordance with the accounting standards mandated by the Ministry of Finance, typically International Financial Reporting Standards (IFRS) as outlined in Ministerial Resolution No. (114) of 2023.
- Plan for Timely Audit Completion: The audit process takes time. Engage your auditors early to ensure the audited financial statements are ready well in advance of the Corporate Tax return filing deadline.
TFAB Accounting & Bookkeeping: Your Partner in Corporate Tax Compliance
Navigating the mandatory audit requirement can seem daunting, but you don’t have to do it alone. At TFAB Accounting & Bookkeeping, we have a dedicated team of experts ready to assist businesses like yours in meeting these new obligations seamlessly. Our services include:
- Comprehensive Statutory Audit Services: We conduct thorough and compliant audits, ensuring your financial statements meet all the requirements of the UAE Corporate Tax Law.
- Expert Financial Statement Preparation: Our team can prepare your financial statements in accordance with IFRS and other relevant standards, ready for the audit process.
- Proactive Corporate Tax Advisory: We provide guidance and support on all aspects of your Corporate Tax obligations, ensuring you remain compliant and optimize your tax position.
Don't Wait Until the Last Minute!
The mandatory audit requirement for companies with turnover exceeding AED 50 million is a significant aspect of the UAE Corporate Tax regime. Taking proactive steps now will ensure a smooth and compliant tax return filing process.
Contact TFAB Accounting & Bookkeeping today for a consultation. Let us help you understand your obligations and provide the expert support you need to navigate this crucial requirement effectively.