Preparing Financial Statement Audit Reports for Corporate Tax Filing in the UAE

The United Arab Emirates announced federal corporate tax, effective on 1st June, 2023, marking the country’s step into a tax regime. Under the new UAE corporate tax Law, every taxable person will be subject to UAE corporate tax on their taxable income, enforced for the first accounting year beginning on or after June 1st, 2023. Certain taxable businesses are required to submit an audited annual financial statement if they meet a specific threshold for ensuring UAE corporate tax compliance.

Under UAE corporate tax regulations, the audit process involves preparing an accurate audited financial statements in compliance with International Financial Reporting Standards (IFRS) for submission to the UAE FTA.

Leading auditing firms in Dubai  assist in reliable and accurate financial statement audits and statutory financial statements as well as corporate tax advisory and compliance support in UAE. This article details the significance of the preparing financial statement audit report for corporate tax in the UAE.

The Role of an Audit Report in UAE Corporate Tax Compliance

As outlined in Ministerial Decision no 84 of 2025, certain taxable businesses are obligated to submit prepared audited financial statements to the UAE FTA to comply with UAE corporate tax. An audit report for corporate tax in the UAE is a certified document issued by the external auditor in the UAE after evaluating the accuracy of the company’s financial statement and compliance with IFRS. The primary objective of an audit report is to ensure that financial statements are accurate, reliable and confidential. The findings of the audit report provides valuable insights on the auditor’s opinion based on the accuracy of financial records and helps to calculate corporate tax liability.

Which entities are required to submit audited financial statements under the UAE corporate tax law?

As per the UAE corporate tax law, entities meeting certain criteria must prepare audited financial statements to ensure UAE corporate tax compliance.

• High revenue business: Businesses earning above AED 50 million are required to submit an audited financial statement to the UAE FTA to comply with the UAE corporate tax.
• Free Zone companies: Qualifying Free Zone Persons are required to submit mandatory audited financial statements regardless of revenue size.

Mandatory Financial Statements Audit for UAE Corporate Tax Filing

Companies in the UAE must mandatorily prepare audited financial statements for corporate tax in the  UAE. The key financial statements are as follows:

• Statement of Financial Position (Balance Sheet)
• Statement of Comprehensive Income (Profit and Loss)
• Statement of Cash Flows
• Statement of Changes in Equity

The UAE FTA may ask for required documents while reviewing the financial statement.

Why does every UAE business show importance to an Audited Financial Statement

Apart from fulfilling corporate tax regulations, the preparation of an audited financial statement brings valuable benefits for UAE companies.

• Ensure financial statements are true and fair representations of the company’s financial position.
• It ensures compliance with IFRS
• Ensure credibility and compliance with UAE FTA and shareholders.
• Auditors in Dubai help to detect and identify errors before submission to the UAE FTA.
• Helps to mitigate penalties, non-compliance risk
• Identify opportunities for business growth

Who Is Qualified to Audit Financial Statements in the UAE?

Every business is obligated to appoint a certified auditor in the UAE to prepare an audited financial statement and statutory financial statement for corporate tax filing in the UAE.  The audit in UAE can be carried out only by auditors registered with Ministry of Economy in UAE. Such qualified auditors bring expertise in UAE corporate tax compliance. Partnering with a leading auditing and accounting firm in the UAE such as Jaxa, helps to ensure smooth statutory audit preparation and accurate financial reporting to the UAE FTA.

Your Roadmap to Preparing a Financial Statement Audit for UAE Corporate Tax

Preparing a financial audit statement for corporate tax in the UAE involves a defined audit process to ensure accuracy, reliability, and adherence to corporate tax compliance and UAE FTA compliance.

The key stages are:

• Choose Trusted Auditors in UAE: Partner with the best auditors in UAE, such as Jaxa Chartered Accountants, also a UAE FTA tax agent, to prepare an audited financial statement for corporate tax compliance in UAE. Such auditors in UAE help to meet UAE FTA requirements with accuracy and confidence.
• Initial Audit Assessment: Experienced auditors in Dubai conduct a detailed analysis of business operations, internal controls, and external risk factors. Based on the audit plan, auditors in the UAE prepare financial statement audits to ensure reliable financial reporting and compliance with UAE auditing and corporate tax standards.
• Audit process execution: Once the auditors in the UAE identify the risk, they perform an in-depth verification of financial records, evaluate internal control, and ensure the financial records are accurate and compliant.
• Audit review and recommendation: Expert auditors in UAE discuss the insights with the management to review discrepancies, suggest improvements, and help to ensure compliance with UAE auditing and corporate tax regulations.
• Preparing Audit Report: Experienced auditors in Dubai prepare and sign an audit report and provide a final audit opinion on the financial position of the company while ensuring compliance with corporate tax and UAE FTA regulations.
• Financial Audit Submission to UAE FTA: After finalizing the financial audit report, the company submits the audited financial statements to the UAE FTA in compliance with UAE Corporate Tax regulations. The UAE FTA may request additional documents or clarifications before determining the company’s corporate tax liability.

Accounting Standards for Financial Statements under UAE Corporate Tax Law

As per Ministerial Decision No. 114 of 2023, businesses subject to UAE Corporate Tax must follow specific accounting standards based on their revenue thresholds.

Partner with the UAE’s best corporate tax advisor- Jaxa 

The preparation of audited financial statements is a cornerstone of Corporate Tax compliance in the UAE. Team up with Jaxa Chartered Accountants, an accounting and auditing firm in the UAE, as well as an UAE FTA tax agent are experts in preparing year end financial audit reports for diverse clientele across the  UAE in Dubai, and Abu Dhabi.

Jaxa Auditors is the best auditing service provider offering the best auditing services in the UAE. Our certified corporate tax consultant in the UAE provides corporate tax services from corporate tax registration, corporate tax return filing, and corporate tax audit for all mainland and Free zones in the UAE.

Let Jaxa handle your UAE Corporate Tax related audit — accuracy and compliance guaranteed. Avoid penalties and ensure accuracy and compliance  — trust Jaxa’s audit professionals.