Essential Steps to Audited Financial Statement under Corporate Tax in UAE

• Ensures financial statements are accurate and confidential
• Provides transparency and accountability to investors and other stakeholders
• Improves business operations, credibility, and reputation
• Detects and stops fraud, identifies growth opportunities

BRISK offers top-quality financial statement audits and corporate tax preparation, audit, and compliance solutions. We help in all aspects of corporate tax advisory services, such as entity formation, income tax filing, and consolidated reporting.

Audit Report for Corporate Tax in UAE:

In the UAE, under Ministerial Decision No.82 of 2023, corporations must submit audited financial statements to ensure compliance with corporate tax regulations. The audit process serves to verify the accuracy and confidentiality of financial statements, promoting transparency and accountability to stakeholders.

Who Needs to Submit? Taxable Persons whose revenue exceeds 50 million Dirhams and a Qualifying Free Zone Person should Prepare Audited Financial Statements for corporate tax.

Why It’s Done? The main reason for this check is to ensure the financial information is correct and private.

How does it work? Checked financial records according to the Federal Tax Authority to make sure they follow the rules of the country.

Financial Statement Accounting Standards for Corporate Tax in UAE

Revenue exceeds 50 million Dirhams or a Qualifying Free Zone Person

• Accounting Standard: International Financial Reporting Standards (IFRS)

Revenue Below 50 million Dirhams

• Accounting Standard: International Financial Reporting Standards for SMEs (IFRS for SMEs)

Financial Documentation Required for UAE Corporate Tax:

To comply with UAE corporate tax regulations, the following financial statements must be furnished to the tax authority:

• Balance Sheet
• Income Statement (Profit/Loss)
• Cash Flow Statements
• Statement of changes in equity

Importance of Financial Statement Audit for UAE Corporate Tax

Conducting a thorough financial statement audit for UAE corporate tax purposes offers several benefits:

Enhanced Business Operations:

• Ensures accuracy and transparency in financial reporting
• Streamlines operations
• Facilitates informed decision-making

Boosted Credibility and Reputation:

• Enhances company credibility
• Fosters trust among stakeholders and investors

Fraud Prevention:

• Detects and prevents fraudulent activities
• Safeguards company assets and reputation

Identification of Growth Opportunities:

• Uncovers areas for improvement and growth
• Guides strategic planning and decision-making

Important Things to Include When Making Corporate Tax Financial Statements in UAE:

• Financial statements may be requested by the Federal Tax Authority for calculating taxable income
• Audited statements are required if revenue exceeds AED 50 million and using zero-rate free zone
• Parent companies must consolidate subsidiaries’ statements with the same fiscal year and standards
• Statements must adhere to Reporting Framework accepted in UAE e.g. IFRS
• 12-month period using accrual accounting until qualifying for the cash-based method
• Supporting documents retained for 7+ years after tax period
• More companies may need yearly external audits due to corporate tax

BRISK Corporate Tax Advisory Services in  UAE:

Businesses operating in the UAE must carefully assess the implications of corporate tax on their activities. Compliance with corporate tax laws is crucial for companies. Our team of Corporate Tax Advisors specializes in guiding businesses through the complexities of the corporate tax system, facilitating a smooth transition, and ensuring compliance.

BRISK: Your Trusted Partner for Corporate Tax Advisory in UAE

 Our comprehensive suite of services is designed to help businesses manage their corporate tax obligations effectively. Our services include:

• Corporate & Deferred Tax Assessment
• Corporate Tax Registration 
• Corporate Tax Implementation
• Preparation of Corporate Tax Return
• Correspondence & Tax Disputes
• Corporate Tax Return Filing
• Corporate Tax Accounting 
• Corporate Tax Compliance 
• Corporate Tax Audit