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:

  1. Aggregated statement of financial position. 
  2. Aggregated statement of profit or loss. 
  3. Aggregated statement of other comprehensive income. 
  4. Aggregated statement of changes in equity. 

The disclosure requirements for the Aggregated Financial Statements should include the following: 

  1. The framework under which the Aggregated Financial Statements have been prepared. 
  2. The basis of aggregation. 
  3. The material accounting policies, estimates and judgments based on which the Aggregated Financial Statements are prepared. 
  4. 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.