In August 2025, the UAE Federal Tax Authority (FTA) issued Decision No. 7 of 2025, which introduces a new compliance requirement for Tax Groups under the Corporate Tax Law (Federal Decree-Law No. 47 of 2022). This regulation is effective for tax periods starting on or after 1 January 2025 and marks a major step towards strengthening financial transparency in the UAE.
Key Requirement: Audited Aggregated Financial Statements
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All registered Tax Groups must now prepare audited aggregated (special purpose) financial statements every tax period.
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These statements must consolidate the standalone accounts of the parent company and all subsidiaries within the tax group.
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Intercompany transactions and balances must be eliminated to provide a clear picture of the group’s financial standing.
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The financial statements must be audited to ensure accuracy, compliance, and accountability.
Why This Matters for Businesses
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Enhanced Transparency – Ensures the tax group’s financial position is reported as a single economic unit.
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Stronger Oversight – Mandatory audits improve trust, accuracy, and compliance with UAE tax laws.
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Compliance Readiness – Businesses must upgrade reporting systems and processes to handle this change effectively.