FTA Issues New Requirements for Tax Group Financial Statements

The Federal Tax Authority (“FTA”) has issued Decision No. 7 of 2025, introducing new rules for tax groups under the Corporate Tax Law, effective for periods starting 1 January 2025: 

• Aggregated financial statements required: Tax groups must prepare special-purpose statements by combining stand-alone accounts of all members (line-by-line), eliminating intra-group transactions. 

• Audit mandatory: Statements must be audited in accordance with International Standards on Auditing (“ISA”) and submitted to the FTA within 9 months of the period end. 

• Uniform policies & AED presentation: All members must apply consistent accounting policies, with financials presented in UAE Dirhams. 

• Exiting members: Must carry forward asset/liability values recorded in the group’s statements for tax purposes. 

The Decision was published in the Official Gazette on 8 August 2025