UAE Updates Audited Financial Statements Requirements: What MD 84 Means for Your Business
The UAE Ministry of Finance has released Ministerial Decision No. 84 of 2025, updating rules on when and how businesses must prepare audited financial statements for corporate tax compliance. Effective from 1 January 2025, this decision replaces earlier guidance and introduces clearer requirements for different business structures.
Key Changes Under MD 84
The new decision clarifies three main categories of businesses that must maintain audited financial statements:
Individual businesses: Any taxable person (not part of a tax group) with annual revenue exceeding AED 50 million
Tax groups: Must now prepare audited special purpose financial statements (SPFS)—a change from the previous approach
Qualifying Free Zone Persons (QFZPs): Continue to require audited statements; those engaged in distribution activities face additional procedural requirements
For non-resident businesses, only revenue derived through permanent establishments or nexuses in the UAE counts toward the AED 50 million threshold.
What This Means
Plan your audit now. If your business has revenue above AED 50 million or operates in a free zone, confirm audit requirements with your accounting firm immediately. The Federal Tax Authority will issue detailed guidance on special purpose financial statements for tax groups, so stay connected with your advisors.
Tax groups need to aggregate carefully. If you operate through multiple entities, work with your auditors to understand how aggregated financial statements will be prepared and what supporting documentation you'll need for each subsidiary.
Compliance is non-negotiable. Audited statements support your corporate tax filings and may be reviewed by the Federal Tax Authority. Starting preparations early—including internal financial reviews—will help avoid last-minute challenges and ensure smooth compliance.