UAE, 18 August, 2025 : The Federal Tax Authority (FTA) has issued Decision No. 7 of 2025, introducing mandatory requirements for audited special purpose aggregated financial statements for tax groups formed under the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022).
The new rules apply to tax periods starting on or after 1 January 2025 and require tax groups to prepare financial statements by aggregating the standalone accounts of the parent and subsidiaries, while eliminating intra-group transactions.
Key Highlights:
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Aggregated statements must comply with IFRS or IFRS for SMEs.
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Business combination adjustments (goodwill, bargain purchase, fair value) are excluded.
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Investments in non-tax group entities to be measured at cost less impairment.
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Aggregated accounts must include a statement of financial position, profit or loss, OCI, and changes in equity; the requirement for a cashflow statement remains uncertain.
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Statements must be presented in AED with uniform accounting policies across all members.
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When a member exits the group, asset and liability values from aggregated accounts must be adopted in standalone accounts for tax computation.
Impact:
The decision significantly changes compliance for tax groups, requiring early preparation for periods ending December 2024 due to the September 2025 filing deadline.
