The audit requirement for books of accounts under the UAE's Corporate Tax (CT) regime is not mandatory for all businesses. However, there are specific categories of businesses that are required to have their financial statements audited by a licensed auditor.
Businesses Required to Have Audited Statements:
- Companies with revenue exceeding AED 50 million:?Businesses whose annual revenue surpasses AED 50 million?must prepare and maintain audited financial statements?for corporate tax purposes. This includes full IFRS financial statements for companies exceeding AED 50 million and IFRS for SMEs (if applicable) for smaller companies choosing this standard.
- Qualifying Free Zone Persons:?Irrespective of their revenue, all?Qualifying Free Zone Persons?are required to have their financial statements audited for CT purposes. Qualifying Free Zone Persons are businesses operating within specific free zones with a 0% CT rate, but only on their?non-qualifying income?earned outside the free zone.
Businesses Not Required to Have Audited Statements:
- Companies with revenue below AED 50 million:?Businesses with an annual revenue?not exceeding AED 50 million?and?not classified as Qualifying Free Zone Persons?are?not required to have their financial statements audited?for CT purposes. They can rely on their unaudited financial statements for tax filings.
- While not mandatory for all companies,?having your financial statements audited?can offer additional benefits, such as?increased transparency, improved financial control, and enhanced credibility with stakeholders.
Have questions about how Corporate Tax provisions apply to your business? Reach out to our team for expert advice.
