Ahmed AbodaifPartner & Co-Founder
Key takeaways
- Corporate Tax requires audited financial statements if revenue exceeds AED 50 million in the tax period.
- Every Qualifying Free Zone Person needs audited statements, whatever its revenue, and every Corporate Tax group needs audited special purpose financial statements.
- Free zone authorities, banks, investors and your own articles may require an audit even when tax law does not.
- IFRS for SMEs may be used if revenue does not exceed AED 50 million.
When Corporate Tax requires an audit
Ministerial Decision No. 84 of 2025 sets the audit requirement for tax periods starting on or after 1 January 2025. It replaced Ministerial Decision No. 82 of 2023, which still applies to tax periods that started before that date. Audited financial statements are required from:
- taxable persons whose revenue exceeds AED 50 million in the tax period;
- every Qualifying Free Zone Person, regardless of revenue — see how the free zone 0% rate works; and
- every Corporate Tax group, which must prepare audited special purpose financial statements for the group. Members do not need separate standalone audited statements for this purpose.
For a non-resident, only the revenue attributable to its permanent establishment or nexus in the UAE counts towards the AED 50 million threshold.
The audited statements support your Corporate Tax return, so the audit has to be finished in time for the filing deadline — nine months after the year-end.
Other reasons you may need audited accounts
- Licensing authorities: many free zone authorities ask for audited financial statements at licence renewal.
- Banks: credit facilities and covenants usually require audited figures.
- Investors and partners: shareholders, buyers and joint-venture partners rely on audited numbers.
- Your own documents: your articles of association or shareholder agreements may require an annual audit.
Which accounting standards apply
| Revenue | Permitted basis |
|---|---|
| Above AED 50 million | Full IFRS |
| AED 50 million or less | IFRS or IFRS for SMEs |
| AED 3 million or less | Cash basis also permitted for Corporate Tax |
Moving between frameworks — for example from IFRS for SMEs to full IFRS when you grow — needs planning, because comparative figures and accounting policies change.
Audit-readiness checklist
- Books closed for the year, with bank, cash and card accounts reconciled.
- Receivables and payables ageing reconciled to the ledger, with doubtful balances reviewed (IFRS 9 expected credit losses).
- Inventory counted and valued at the lower of cost and net realisable value.
- Fixed asset register with additions, disposals and depreciation.
- Lease schedules for right-of-use assets and lease liabilities (IFRS 16).
- End-of-service benefit provision calculated for every employee (IAS 19).
- Related-party balances and transactions listed and confirmed.
- Accruals, prepayments, contracts and legal matters documented.
- VAT returns reconciled to revenue and expenses, and the Corporate Tax computation prepared.
How Business Future CPA helps
We prepare your year-end financial statements under IFRS or IFRS for SMEs, build the audit file and supporting schedules, answer the auditor's queries alongside your team, and reconcile the audited figures to your Corporate Tax return. See our internal audit and audit-readiness and financial reporting services.
Frequently asked questions
Is an audit mandatory for all companies in the UAE under Corporate Tax?
No. Corporate Tax requires audited financial statements where revenue exceeds AED 50 million, for every Qualifying Free Zone Person and for every tax group (special purpose financial statements). Other rules — licensing authorities, banks or your own articles — may still require an audit.
Can a small company use IFRS for SMEs?
Yes, where revenue does not exceed AED 50 million. Businesses with revenue of AED 3 million or less may also use the cash basis for Corporate Tax purposes.
When must the audit be completed?
In time for the Corporate Tax return, which is due nine months after the end of the tax period. Licensing and bank deadlines can be earlier.
Official sources: UAE Ministry of Finance · Federal Tax Authority (FTA)
This guide is general information based on UAE legislation and official announcements as at the date shown. It is not tax or legal advice for your specific situation — talk to us before you act.