What About Tax Groups?
A significant refinement introduced by Ministerial Decision No. 84/2025 is for tax groups. Instead of requiring separate audits for each entity within the group, the law mandates audited special purpose consolidated financial statements for the group as a whole.
• This aims to streamline compliance, reduce administrative effort, and still uphold consistent reporting standards.
• The FTA will release specific rules and formats for these special purpose statements in due course.
Additional Compliance for Free Zone Distributors
QFZPs engaged in distribution of goods or materials in or from a Designated Zone, under Ministerial Decision No. 265 of 2023, must comply with any additional procedures set by the Authority.
Small Business Relief Still in Play
For small businesses with revenue below AED 3 million, the Small Business Relief remains valid until December 2026, and cash-basis accounting is permitted. However, these entities must still retain records for at least seven years.
Why Early Compliance Matters
Whether you’re a mainland business, free zone entity, offshore entity, or part of a tax group, proactive tax preparation is key to avoiding penalties and audit complications. Early action allows you to:
• Verify financials and make final tax adjustments
• Review related party transactions
• Prepare Transfer Pricing documentation, if required
• Minimize last-minute stress and ensure smooth submissions