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UAE Audit in the Corporate Tax Era: Audited Statements, QFZP Requirements and the New AUP Report
How corporate tax has reshaped UAE statutory audit: who needs audited statements, what QFZPs must provide, and the new agreed-upon procedures report.
Corporate tax has turned the statutory audit into part of the tax process. Audited statements are now the basis of the return for larger businesses and a condition of the 0% rate for free zone companies, and 2026 added a new auditor's report for some free zone distributors.
Who Needs Audited Statements for Tax
Ministerial Decision No. 84 of 2025, which applies to financial years starting on or after 1 January 2025, requires audited financial statements from taxable persons with revenue above AED 50 million and from every Qualifying Free Zone Person.
The New AUP Report for Distributors
FTA Decision No. 6 of 2026 requires QFZPs that distribute goods in or from a designated zone to obtain an agreed-upon procedures report from an independent auditor, for tax periods starting on or after 1 January 2026. It tests whether customers buy for resale or further processing and whether goods entered through the designated zone.
What Auditors Now Look At
Tax-aware audits pay closer attention to:
- Related-party transactions and their disclosure
- Revenue classification for free zone companies (qualifying and non-qualifying)
- Current and deferred tax balances
- Going concern and subsequent events up to the return date
Timing
For calendar-year companies, audited statements should be signed well before the 30 September return deadline. Agree scope and timing with your auditor early in the year, especially if you also need an AUP report.
Frequently Asked Questions
Does corporate tax require an audit in the UAE?
Yes for taxable persons with revenue above AED 50 million and for every Qualifying Free Zone Person, under Ministerial Decision No. 84 of 2025.
What is an agreed-upon procedures report for a QFZP?
A report by an independent auditor setting out factual findings on prescribed tests. FTA Decision No. 6 of 2026 requires one from QFZPs that distribute goods in or from a designated zone.
Sources
- KPMG: Updated ministerial decision on audited financial statements
- PwC: UAE Corporate Tax alert for QFZP distribution activities
This article is general information, not advice for your situation. Rules change; check the current position or speak to an advisor before acting.
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