The implementation of corporate tax in the UAE has increased transparency and created a more disciplined regulatory environment for businesses. One of the main compliance requirements under Ministerial Decision No. 84 of 2025 is the preparation and maintenance of an audited financial statement in Dubai. The UAE Federal Tax Authority stresses that tax compliance is mandatory, and companies must keep proper records, meet tax filing deadlines, and cooperate with auditors.
As 2026 approaches, understanding your audit obligations under the UAE corporate tax law is essential. Accurately integrating exemptions and thresholds is crucial in the 2026 tax year. A small mistake in classification may lead to penalties or missed tax benefits. This is where auditors in Dubai play a role. Partnering with a leading auditing firm in the UAE, such as Jaxa Chartered Accountants, which provides the best auditing services in the UAE, ensures your audit process is handled accurately by evaluating the business structure, determining the correct audit requirements for 2026 and beyond, and ensuring 100% compliance as per the UAE FTA regulations.
UAE Audit Requirement Breakdown: Who Must Maintain an Audited Financial Statement?
Under Ministerial Decision No. 84 of 2025, the UAE Corporate Tax Law defines which businesses must prepare and maintain audited financial statements. Audited financial statements in the UAE are mandatory for specific entities, and meeting audit requirements is vital for preparing UAE corporate tax returns in 2026.
Article 2 of the Ministerial Decision No. 84 of 2025 mandates the audited financial statements for:
- Any taxable person (not a part of a tax Group) with an annual revenue exceeding AED 50 million.
- A Qualifying Free Zone Person.
Maintaining audited financial statements is not optional – but it is a legal obligation for these businesses.
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Mandatory Audit for revenue over AED 50 million:
Any taxable person, including any business or natural person earning revenue exceeding AED 50 million during the tax period, provided it is not registered as a Tax Group, must prepare a mandatory audited financial statement as per the UAE corporate tax law.
For a non-resident person, only revenue connected to the Permanent Establishment or nexus is considered when determining whether the AED 50 million threshold has been crossed.
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Mandatory Audit for Qualifying Free Zone Persons (QFZPs)
A Qualifying Free Zone Person (QFZP) is a Free Zone company eligible for 0% corporate tax rate on Qualifying income. Every QFZP must prepare an audited financial statement regardless of revenue or size of business to maintain its status.
This mandatory audit is necessary to validate:
- Compliance with Economic Substance
- Accurate identification and reporting of Qualifying income
- Adherence to the De-Minimis threshold
Even small Free Zone entities with low revenue must undergo a statutory audit to avail the benefit of the 0% Corporate tax regime.
To stay fully compliant, rely on the best auditing and accounting firm in the UAE, such as Jax, which specializes in preparing financial statements. This ensures maintaining QFZP eligibility and meeting UAE corporate tax regulations.
What is the Importance of preparing an audited financial statement in the UAE?
- Ensure financial reporting is accurate, reliable, and transparent to avoid the UAE FTA
- Strengthen trust and credibility with investors, banks, and regulatory bodies.
- Ensure audited financial statements adhere to IFRS or IFRS for SMEs.
- Helps improve business operations by identifying inefficiencies, gaps, and risks.
- Confirm the eligibility for key tax benefits such as QFZP status.
Audit Compliance Challenges Under UAE Corporate Tax
- Disorganized Books and records make it difficult to verify balances.
- Incorrect application of IFRS standards leading to misstatement and compliance issues.
- Unsupported Accounting Estimates, such as depreciation, revenue, and provisions.
- Missing required disclosures on loans, related parties, or contingent liabilities.
- Lack of awareness of mandatory audit rules, especially under the UAE Corporate Tax Law.
Which Entities are not required from Audited Financial Statements as per the Corporate Tax Law in the UAE
The following entities are not required to maintain audited financial statements in the UAE.
- Businesses with annual revenue below AED 50 million: Any taxable person with a revenue below AED 50 million is not required to have an audited financial statement under the UAE corporate tax law.
- Non-Qualifying Free Zone Persons (Non-QFZPs): Non-Qualifying Free Zone Persons are subject to 9% corporate tax; such free zones are not required to maintain audited financial statements in the UAE.
- Individual Members of a Tax Group: Individual entities in a tax group are not required to prepare separate audited financial statements, as the tax group submits a consolidated Special Purpose Financial Statement (SPFS).
- Non-resident persons without a UAE Permanent Establishment or Nexus (PE): Non-resident entities that have no PE or nexus in the UAE are not required to maintain audited financial statements in the UAE.
Stay Compliant in 2026 with Jaxa’s Expert Guidance
As UAE compliance standards continue to tighten, maintaining audited financial statements is no longer optional – it is a strategic necessity. Engaging with an auditing and accounting firm in the UAE and UAE FTA tax agent- Jaxa Chartered Accountants ensures businesses meet every auditing requirement with accuracy, transparency, and reliability. Jaxa delivers the best auditing services in the UAE.
Our key differentiators:
- Specialists in IFRS-Compliant Financial Statements
- End-to-End Financial Statement Preparation & Review
- UAE FTA tax agent support
- 100% accuracy and transparency
With 18+ years of auditing excellence, our expert auditors in Dubai handle the preparation and review of financial statements as per IFRS standards while meeting UAE corporate tax and VAT compliance.
We manage the end-to-end audit process to help businesses maintain records through robust cloud accounting tools while providing strategic financial insights that support scalability and long-term business performance.
Get Your Financial Statements Audit-Ready: Speak to our Jaxa Experts
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