United Arab Emirates Tax Agency Clarifies Aggregated Financial Statements, Audit Requirements for Corporate Tax Groups

The Emirati Federal Tax Authority Aug. 28 issued Public Clarification No. CTP007, clarifying tax group financial statements and audit requirements, for corporate tax purposes. The clarification includes that: 1) tax groups must prepare aggregated financial statements by combining each member’s standalone annual financials and eliminating intra-group transactions; 2) these statements may deviate from consolidated financial statements prepared under the parent’s International Financial Reporting Standards (IFRS) accounting standards; 3) groups must prepare audited financial statements when the group’s consolidated revenue exceeds 50 million Emirati dirhams (US$13.6 million) in the relevant period, for tax periods beginning before Jan. 1; 4) groups must ...