Ministerial Decision No. 84 of 2025: What UAE Businesses Need to Know About Financial Reporting
June 5, 2025
What You Need to Know
Financial reporting might not be the most glamorous topic, but in the world of tax, it’s the backbone of everything. If your accounts aren’t accurate, your tax filings won’t be either. That means penalties, audits, and missed opportunities.
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This May, the UAE Ministry of Finance issued Ministerial Decision No. 84 of 2025, replacing the earlier Decision No. 114 of 2023. It raises the bar for businesses under the UAE Corporate Tax regime when it comes to how they prepare and submit their financial statements.
Whether you’re a UAE-based entrepreneur, part of a family business, or advising HNW clients, here's what you need to know—and what to do next.
Why Financial Reporting Is Critical in the UAE
Since the launch of the UAE’s Corporate Tax regime in 2023 (at a standard 9% rate on profits above AED 375,000), accurate financial records have gone from "nice to have" to "non-negotiable."
Ministerial Decision No. 84 of 2025 makes it even clearer: proper financial statements aren’t just paperwork. They’re essential for:
- Corporate tax returns
- Maintaining Qualifying Free Zone Person (QFZP) status
- Group structuring or business exits
- Investor confidence and bank funding
What’s New in Ministerial Decision No. 84?
1. IFRS Is Now the Standard—No Excuses
All financial statements must be prepared using International Financial Reporting Standards (IFRS). The days of using simplified or local formats are over. This may impact free zone companies and smaller entities used to minimal compliance.
2. Audited Financials Now Required for More Entities
More businesses will now need audited accounts. This includes:
- Large businesses (by revenue or assets)
- Qualifying Free Zone Persons (QFZPs)
- Holding companies and entities within group structures
Even if you weren’t previously required to undergo a statutory audit, corporate tax obligations now bring that expectation to your door.
3. Record Retention Obligations
All financial records—statements, ledgers, invoices, and backup data—must be retained for at least 7 years and be ready for inspection by the Federal Tax Authority (FTA) at any time.
Who Needs to Pay Attention?
You’re affected if:
- You own or operate a mainland or free zone company.
- You’re a high-net-worth individual with a holding company or family office in the UAE.
- You’re part of a group structure, either local or cross-border.
- You want to maintain 0% tax status as a QFZP.
- You're planning to sell, restructure, or raise capital and need a clean financial trail.
What You Should Do Next
Here are your action steps:
- Audit check – Confirm if your business now falls under mandatory audit requirements.
- Align with IFRS – Ensure your accounts are being prepared to full IFRS standards (not partial or simplified versions).
- Update systems – Store records digitally and back them up securely for a minimum of 7 years.
- Speak to your adviser – If you’re unsure, now’s the time to get professional input before issues arise.
Final Thoughts
Ministerial Decision No. 84 of 2025 is part of the UAE’s wider move towards high-quality, internationally respected tax standards. It's a strong reminder that clear, reliable financial records are more than admin—they’re your strongest protection in a tax environment that’s getting sharper.
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