FTA Decision No.7 of 2025

Requirements for Preparing and Maintaining Audited Special Purpose Financial Statements for a Tax Group

The UAE Ministry of Finance, under Ministerial Decision No. 84 of 2025, now requires all Tax Groups to prepare audited special-purpose aggregated financial statements for Corporate Tax purposes. The Federal Tax Authority (FTA) has released detailed guidance on how these statements must be prepared and presented.

What’s Required

Tax Groups must prepare aggregated financial statements annually, based on the standalone financial statements of each member. All intra-group transactions must be eliminated, while transactions with entities outside the group remain. Statements must follow IFRS or IFRS for SMEs, but exclude certain adjustments under IFRS 3 and IFRS 10 relating to business combinations.

Members must combine financial data line-by-line, without eliminating investments or equity balances between group members. Impairments on investments within the group must also remain in the aggregated figures.

Presentation & Disclosure

The statements must include:

• Statement of Financial Position
• Statement of Profit or Loss
• Statement of Other Comprehensive Income
• Statement of Changes in Equity

They must also disclose the preparation framework, the basis of aggregation, and the key accounting policies, estimates, and judgments applied.

When a Member Leaves

If a company exits the Tax Group, it must adopt the asset and liability values recorded in the group’s aggregated statements as opening balances — even if accounting standards prevent direct adoption, the taxable income must still be calculated as if these values had been used.

Effective Date

The requirements apply to tax periods starting on or after 1 January 2025. While FY 2024 is not covered, early adoption is encouraged to ensure consistent policies, smooth the transition to audited statements, and allow time to refine processes ahead of mandatory compliance.

Download the Full Document for complete guidance and compliance details.