What is meant by Audited Financial Statements?
Audited financial statements are the financial statements of an organization that have been examined by a certified auditor.
Are Audited Financial Statements (AFS), mandatory for Corporate Tax filing?
Ministerial Decision No. 82 of 2023, mentions the purposes of Clause 2 of Article 54 of the Corporate Tax Law.
The following categories of Taxable Persons should prepare and maintain audited financial statements:
- A Taxable Person earning revenue exceeding AED 50,000,000 (fifty million United Arab Emirates dirhams) during the relevant Tax Period.
- A Qualifying Free Zone Person.
Why is AFS required for Qualifying Free Zone Person?
It is mandatory for the Qualifying Free Zone Person to submit the Audited Financial Statement while submitting the annual tax returns in order to avail of the 0% tax benefit eligible on the Qualifying Income.
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Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.