This document explains, in detail, the statutory, tax, audit, and regulatory compliance requirements for UAE
businesses whose financial year ended on 31 December 2025, and the ongoing obligations for 2026.
A. Year-End Accounting Requirements (Dec 31, 2025)
• Close books of accounts up to 31 December 2025.
• Record all income, expenses, accruals, provisions, and adjustments.
• Reconcile bank accounts, receivables, payables, VAT, and inventory.
• Prepare financial statements in accordance with IFRS:
• Statement of Profit or Loss
• Statement of Financial Position (Balance Sheet)
• Cash Flow Statement
• Notes to Accounts
• Maintain supporting documents and accounting records for a minimum of 5 years.
B. Audit Compliance for FY 2025
• Audit is mandatory if annual revenue exceeds AED 50 million.
• Audit is mandatory for companies forming part of a Corporate Tax Group.
• Audit is mandatory for Qualifying Free Zone Persons (QFZP) claiming 0% corporate tax.
• Audits must be conducted by a UAE-licensed auditor.
• Audited financial statements must comply with IFRS.
• Many Free Zones (DMCC, JAFZA, DIFC, ADGM, etc.) require audited accounts within 4–6 months from
year-end.
C. Corporate Tax Compliance – FY 2025
• Corporate Tax registration with the Federal Tax Authority (FTA) is mandatory.
• Corporate Tax return must be filed through the EmaraTax portal.
• Tax period: 1 January 2025 to 31 December 2025.
• Corporate Tax return deadline: 30 September 2026 (9 months after year-end).
• Any corporate tax payable must be paid by the same deadline.
• Audited financial statements must be attached where required.
D. Economic Substance Regulations (ESR)
• Applicable to companies conducting Relevant Activities.
• ESR Notification deadline: 30 June 2026 (6 months after year-end).
• ESR Report deadline: 31 December 2026 (12 months after year-end).
• Filed through the Ministry of Finance ESR portal.
• Non-compliance attracts significant penalties.
E. Ultimate Beneficial Owner (UBO) Compliance
• Maintain an updated UBO register.
• Update UBO details annually or upon any ownership/control change.
• Filed with the relevant licensing authority or free zone.
F. Compliance Requirements for 2026
• Maintain monthly bookkeeping and reconciliations.
• Continue VAT compliance if VAT registered (monthly or quarterly returns).
• Prepare for FY 2026 audit starting Q4 2026.
• Corporate Tax return for FY 2026 due by 30 September 2027.
• Ensure continued compliance with Free Zone or Mainland authority rules.
G. Important UAE Official Links
• Federal Tax Authority – Corporate Tax: https://tax.gov.ae
• UAE Government Corporate Tax Portal: https://u.ae
• FTA Corporate Tax Guides & Clarifications: https://tax.gov.ae
• Ministry of Finance – Economic Substance Regulations: https://mof.gov.ae
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