UAE’s Federal Tax Authority issues Decision 7/2025 requiring tax groups to prepare annual audited aggregated financial statements in line with IFRS.
The Federal Tax Authority of the UAE has published Decision No. 7/2025 on 16 July 2025, establishing rules on how audited special-purpose financial statements must be prepared and maintained by tax groups.
Under this Decision, and for the purposes of Clause 1 of Article 54 (Financial Statements) of Federal Decree-Law No. 47 of 2022 (the Corporate Tax Law), a Tax Group is required to prepare special purpose financial statements in the form of aggregated financial statements, following the framework outlined in Article 3 of the Decision.
The framework outlines several key requirements for preparing aggregated financial statements for tax groups. Among these:
- The standalone financial statements of each member of the tax group must be combined, with any intercompany transactions eliminated, to form the aggregated financial statements.
- These aggregated financial statements must be prepared annually, based on the standalone financial statements of the tax group members for the relevant financial year.
- The aggregated financial statements must adhere to International Financial Reporting Standards (IFRS) or International Financial Reporting Standards for small and medium-sized entities (IFRS for SMEs), in accordance with specific provisions detailed in the Decision.
Statements and Disclosure Requirements for Aggregated Financial Statements Purposes
The statements to be presented in a set of Aggregated Financial Statements are:
- Aggregated statement of financial position.
- Aggregated statement of profit or loss.
- Aggregated statement of other comprehensive income.
- Aggregated statement of changes in equity.
The disclosure requirements for the Aggregated Financial Statements should include the following:
- The framework under which the Aggregated Financial Statements have been prepared.
- The basis of aggregation.
- The material accounting policies, estimates and judgments based on which the Aggregated Financial Statements are prepared.
- The explanatory information and notes that sufficiently support the numbers presented in the Aggregated Financial Statements.
Decision No. 7 of 2025 applies to tax periods beginning on or after 1 January 2025.