UAE Audit Requirements

In the United Arab Emirates (UAE), the requirement for companies to audit their financial statements is determined by specific criteria outlined in the corporate tax regulations and other applicable laws.

The corporation tax guide of November 2024, which is available on the FTA website, provides more details. Below is a summary.

Corporate Tax Regulations:

According to Ministerial Decision No. 82 of 2023, the following categories of taxable persons are mandated to prepare and maintain audited financial statements:

1. Taxable Persons with Revenue Exceeding AED 50 Million: Any taxable person whose revenue surpasses AED 50 million during the relevant tax period is required to have their financial statements audited.

2. Qualifying Free Zone Persons: Entities operating within UAE free zones that meet specific criteria to benefit from the 0% corporate tax rate on qualifying income are obligated to maintain audited financial statements, irrespective of their revenue.

So that means that even if you’re a small business in a freezone and you want to qualify for the 0% corporation tax rate, you are required to get your financial statements audited.