Does your UAE company need an audit? Corporate Tax and free zone rules explained

Since Corporate Tax arrived, more UAE businesses need audited financial statements than before. The rules come from three places: the Corporate Tax law, your licensing authority and, sometimes, your bank or investors.

Corporate Tax: Ministerial Decision No. 84 of 2025

For tax periods starting on or after 1 January 2025, these businesses must prepare and keep audited financial statements:

• Revenue above AED 50 million in the tax period (for businesses not in a tax group).
• Every Qualifying Free Zone Person, whatever its revenue. Without audited statements, the 0% free zone rate is at risk.
• Every tax group, which must prepare audited special purpose financial statements for the group.

For non-resident businesses, only revenue linked to their UAE permanent establishment or nexus counts towards the AED 50 million threshold.

Free zones and licence renewals

Many free zone authorities ask for audited financial statements every year, often when you renew your licence. The requirement, deadline and list of approved auditors differ between free zones, so check your own authority's rules early in the year.

Banks, investors and tenders

Even when no law requires an audit, banks often ask for audited accounts before approving facilities, and many government and corporate tenders require them. An audit also gives investors and buyers confidence if you plan to raise funds or sell the business.

Who can sign the audit

An audit report must be signed by an auditor registered with the Ministry of Economy and, where relevant, approved by your free zone authority. Accounting firms that are not registered auditors can prepare your books and audit schedules, but cannot sign the audit report.

How to make the audit faster and cheaper

1. Close and reconcile the books monthly so the year end is not a catch-up exercise.
2. Prepare a fixed asset register, receivable and payable ageing and inventory counts before the auditor arrives.
3. Keep contracts, loan agreements and related-party documents in one shared folder.
4. Agree the audit timeline early, especially if your free zone renewal date is close to your year end.

How NAMAA can help

We prepare audit-ready IFRS financial statements and schedules and coordinate the audit with our registered partner audit firms, which carry out and sign the audit. You deal with one team from the first trial balance to the signed report.

Frequently asked questions