Determination of Categories of Taxable Persons Required to Prepare and Maintain AFS

The Corporate Tax Law plays a pivotal role in shaping the taxation landscape of the United Arab Emirates (UAE). Significant Decisions are published and enacted to ensure clarity and consistency of its application. In this blog, we will focus on the categories of taxable persons required to maintain audited financial statements and discuss the publication and application of the relevant decision

1. Taxable Persons with Revenue exceeding AED 50,000,000: Any taxable person whose revenue exceeds AED 50,000,000 during the relevant tax period is obligated to prepare and maintain audited financial statements. This requirement applies to companies and individuals whose business activities generate significant revenue.
2. Qualifying Free Zone Persons: Another category of taxable persons mandated to maintain audited financial statements is Qualifying Free Zone Persons.

Publication and Application of the Decision:

1. Publication: This decision shall be published to ensure transparency and accessibility to all relevant stakeholders. Publication allows taxpayers, tax professionals, and regulatory authorities to access and understand the provisions outlined in this decision.
2.  Effective Date: The decision came into effect 15 days after publication, i.e., 10th April 2023. This timeframe provides sufficient notice for affected parties to familiarize themselves with the decision's requirements and take necessary steps for compliance.

By adhering to the guidelines outlined in these articles, taxpayers can ensure compliance with the tax regulations and contribute to a fair and transparent taxation system in the UAE. Taxpayers and relevant stakeholders should stay informed about any updates or amendments to these articles to align their practices accordingly.