The UAE Ministry of Finance has issued an updated Ministerial Decision clarifying the requirements for the preparation and maintenance of audited financial statements. All tax groups are now required to prepare audited special purpose aggregated financial statements. However, individual members of the tax group are not required to prepare separate audited financial statements.
The Federal Tax Authority (FTA) will also issue further guidance on the preparation of special purpose aggregated financial statements for corporate tax purposes.
Additionally, the new decision introduces clarifying procedures for Qualifying Free Zone Persons engaged in the distribution of goods or materials within or from Free Zones. The FTA will also publish further guidance on these provisions.
These clarifications will ensure that distribution businesses can confidently benefit from the corporate tax advantages available to Free Zone entities.
