The UAE Ministry of Finance will issue updates pertaining to the financial statements of tax groups as well.
Dubai: Business owners involved in the distribution of goods both within and outside designated free zones will soon receive clarification regarding their corporate tax obligations.
The FTA plans to publish guidance to ensure distribution businesses can have certainty to take advantage of the corporate tax-free zone regime.
Businesses deriving qualifying income from particular free zones can take advantage of the benefit of 0% corporate tax. However, within this construct, distribution-oriented businesses were waiting for some more guidance.
The Finance Ministry of UAE updated a ministerial decision that added ‘clarifying processes for qualifying free zone’ businesses.
This updates the necessities for preparing and maintaining financial statements that are audited to comply with the corporate tax legislation.
The update ‘sets out clear criteria for tax groups to prepare audited financial statements.’
“Tax groups will be obliged to prepare custom aggregate audited financial statements,” said the ministry statement.
“Nonetheless, to lessen the compliance liability on tax groups and to protect the UAE’s reputation for facilitating businesses, members of a tax group will not have to prepare audited separate financial statements”.
“Further details will be provided by the FTA concerning the outline for preparing special purpose accumulated financial statements aligned with corporate tax regulations.”
