06 Jul 2023
Accounting Standards for Taxation Purposes: A Closer Look at Ministerial Decision No. 114 of 2023
In an effort to streamline accounting practices and methods for taxation purposes, the UAE government has introduced Ministerial Decision No. 114 of 2023. This decision, which aligns with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, provides clarity on various aspects of financial reporting and standards.
The decision states:
Article (2) - Preparing Financial Statements Using the Cash Approach of Accounting
Article (3) - Financial Statements
Article (4) - Applicable Accounting Standards
Article (5) - Publication and Application of this Decision
The introduction of Ministerial Decision No. 114 of 2023 provides businesses and individuals with more precise guidelines on accounting standards and methods for taxation purposes. Organizations can enhance transparency, accuracy, and consistency in their financial reporting processes by ensuring compliance with these standards. Therefore, businesses need to review the decision and adapt their accounting practices accordingly to meet the requirements set forth by the UAE government.