On 6 November 2023, the Federal Tax Authority (FTA) of the United Arab Emirates (UAE) released the Corporate Tax Guide on Accounting Standards and Interaction with Corporate Tax – CTGACS1. This guide provides general guidance on the interaction of Accounting Standards with Corporate Tax. The guide includes:

  • Preparation of Financial Statements;
  • The Cash Basis of Accounting;
  • The realization basis of accounting;
  • Other adjustments under Article 20(2)(i) of the Corporate Tax Law; and
  • Adjustments under the transitional rules;
  • The basis for the preparation of financial statements of a tax group;
  • Accounting methods (accrual basis versus cash basis).

This guide is essential for anyone preparing the Financial Statements for Taxable Persons for Corporate Tax purposes.