FinMin issues its requirements for audited financial statements: The Finance Ministry has introduced a number of new amendments (pdf), detailing its requirements and categories for entities that are required to prepare and maintain audited financial statements under the corporate tax law.

Remember: The 9% business tax was introduced by the Finance Ministry back in June 2023.

What the regulations entail: Any taxable person or entity who is not part of a corporate tax group with revenues exceeding AED 50 mn will be required to prepare and maintain audited financial statements. In addition, all entities classified as Qualifying Freezone Persons (QFZPs) — that is, entities operating within a freezone in the UAE with income that does not qualify for corporate tax exemptions — will also face the same requirements.

All entities registered as tax groups for corporate tax purposes will also be required to prepare audited financial statements — however, individuals within the tax groups don’t have to prepare separate ones.

For non-resident persons, only revenue derived through permanent establishments or nexuses in the UAE will count towards the AED 50 mn threshold that would require them to prepare audited financial statements.

When it will come into effect: This decision will apply to tax periods commencing on or after 1 January of this year, and has come into effect starting 28 April.

ICYMI- The Finance Ministry also recently decided that it would exempt companies from having to submit standalone financial statements for corporate tax purposes, maintaining only the requirement for audited special purpose aggregated financial statements for corporate tax purposes. The ministry has been working to ease corporate tax requirements, including through the introduction a number of new amendments that exempt Qualifying Investment Funds (QIFs) and Qualifying Limited Partnerships (QLPs) from paying corporate tax under certain conditions. The ministry also issued amendments in November to ease administrative and tax compliance requirements for domestic businesses, foreign partnerships, and family foundations.

ALSO- The Finance Ministry and the Federal Tax Authority are waiving administrative fines for corporate taxpayers, state news agency Wam reports. The waiver also applies to certain exempt persons who failed to submit their tax registration applications on time. To qualify, eligible parties must file their tax returns or annual statements within seven months from the end of their first tax period.

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