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UAE Accounting & Audit Compliance — 2026

UAE Accounting, Auditing & IFRS Compliance Guide

Understand the difference between statutory company audits and Corporate Tax audit requirements, the UAE financial-reporting standards used for Corporate Tax, record-retention periods, QFZP obligations and auditor registration.

The UAE accounting and audit framework has more than one layer

A UAE business can be subject to accounting and audit requirements from several different legal sources. The Corporate Tax framework determines how a Taxable Person prepares financial statements and when audited financial statements are required for tax purposes. Separately, the UAE Commercial Companies Law contains company-law requirements, including annual audit requirements for limited liability companies and joint-stock companies.

The correct compliance answer therefore depends on the legal form of the business, whether it is a Taxable Person, whether it is a Qualifying Free Zone Person, its Corporate Tax revenue, and whether a sector-specific or local/free-zone rule also applies.

Corporate Tax accounting

Taxable Persons generally use IFRS. If revenue does not exceed AED 50 million, IFRS for SMEs may be applied under the applicable Corporate Tax accounting rules.

Corporate Tax audit trigger

A Taxable Person deriving revenue exceeding AED 50 million during the relevant Tax Period must prepare and maintain audited financial statements. A QFZP is also within the audited-financial-statement requirement.

Statutory company audit

Every limited liability company and joint-stock company must have one or more auditors for an annual audit under the Commercial Companies Law.

Audit obligation evaluator

This calculator gives a high-level result from the federal rules covered on this page. It is not a substitute for checking the company’s incorporation law, licence, free-zone rules, sector regulation or engagement requirements.

AED 0AED 50M thresholdAED 100M

Key compliance thresholds

Cash-basis thresholdAED 3M or less
IFRS for SMEs optionRevenue ≤ AED 50M
Corporate Tax audit trigger> AED 50M revenue
QFZP audit requirementYes
Corporate Tax record retention7 years
Company-law accounting recordsAt least 5 years

Why the legal form matters

A revenue-only calculator can produce a misleading result. The Commercial Companies Law independently requires annual audits for LLCs and joint-stock companies, so an LLC with AED 10 million of revenue can still have a statutory audit requirement even though it has not crossed the AED 50 million Corporate Tax audit threshold.

For other legal forms, additional legislation, licence conditions or free-zone rules may apply.

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Accounting standards for UAE Corporate Tax

The UAE Corporate Tax framework uses financial statements as the starting point for determining accounting income and therefore Taxable Income. For Corporate Tax purposes, the accepted accounting standards are IFRS and, where the requirements are met, IFRS for SMEs.

SituationAccounting treatment for Corporate Tax
General Taxable PersonFinancial Statements are generally prepared under IFRS.
Revenue not exceeding AED 50MThe Taxable Person may apply IFRS for SMEs in accordance with the applicable Ministerial Decision.
Revenue not exceeding AED 3MThe Taxable Person may use the cash basis of accounting, subject to the applicable rules.
Revenue above AED 3MThe accrual basis generally applies unless exceptional circumstances and the FTA rules permit otherwise.

Corporate Companies Law audit requirement

Article 27 of the UAE Commercial Companies Law states that every joint-stock company and limited liability company shall have one or more auditors to carry out an annual audit of its accounts.

This means that the Corporate Tax revenue threshold is not the universal starting point for a company audit. A qualifying LLC or joint-stock company can have a statutory audit obligation even when revenue is far below AED 50 million.

Corporate Tax audited financial statements

Under the Corporate Tax framework, a Taxable Person deriving revenue exceeding AED 50 million during the relevant Tax Period must prepare and maintain audited financial statements. A Qualifying Free Zone Person is also within the category required to prepare and maintain audited financial statements.

The Corporate Tax rule therefore operates independently from the company-law audit obligation and should be evaluated alongside the entity's legal form.

QFZP and audited financial statements

Qualifying Free Zone Persons receive special Corporate Tax treatment only if they satisfy the conditions of the UAE Corporate Tax regime. One important compliance point for this page is that a QFZP is itself one of the categories required to prepare and maintain audited financial statements.

QFZP status should not be described as an audit requirement that starts only after AED 50 million of revenue.
The QFZP audited-financial-statement requirement is separate from the revenue-based Corporate Tax audit category.
The QFZP rules also contain other conditions concerning qualifying income, excluded activities and other compliance requirements that are outside this accounting-only page.
A business should confirm its QFZP status and current compliance conditions using the latest FTA legislation and guidance before relying on the 0% rate.

Record retention: 7 years for Corporate Tax, 5 years under company law

The original page combined the tax and company-law retention periods into a single seven-year rule. They should be kept separate.

RequirementMinimum periodLegal context
Corporate Tax records7 yearsRecords and documents supporting the Corporate Tax position, following the end of the relevant Tax Period.
Company accounting recordsAt least 5 yearsAccounting records kept by companies under the Commercial Companies Law, following the end of the fiscal year.

For records supporting a Corporate Tax position, the seven-year tax requirement is the relevant federal minimum described here. Other industry, litigation, financing, regulatory or contractual requirements can require longer retention.

What records should a UAE Taxable Person maintain?

The FTA has specifically reminded Corporate Tax registrants that the records retained should be sufficient to support the information filed with the FTA and enable the Authority to determine Taxable Income.

Records of transactions during the Tax Period.
Records of assets, including purchases and disposals.
Records of liabilities.
Records of shares held at the end of the Tax Period, where relevant.
Financial statements and supporting accounting documentation.
Documents and calculations supporting positions taken in the Corporate Tax return.
Transfer-pricing and related-party documentation where required by the applicable rules.
Other records requested by the FTA to support a Taxable Person’s tax position.

Who can perform the audit?

The original wording "MOEC-licensed auditor" was too imprecise. UAE federal auditing rules regulate the profession and the Ministry of Economy and Tourism currently operates services for registering and renewing auditors and audit offices.

For Corporate Tax purposes, the FTA explains that where the company is incorporated in the UAE, or operates in the UAE through a UAE permanent establishment, the audit must be performed by a UAE-registered auditor in accordance with the applicable federal auditing legislation.

Practical annual compliance checklist

Determine the entity’s legal form and identify whether the Commercial Companies Law requires an annual audit.
Confirm whether the entity is a Taxable Person for UAE Corporate Tax purposes.
Check the entity’s revenue for the relevant Tax Period against the AED 50 million audited-financial-statement threshold.
Confirm whether the entity is a Qualifying Free Zone Person.
Determine whether IFRS or the permissible IFRS for SMEs option applies for Corporate Tax reporting.
Confirm whether the cash-basis option is available where revenue does not exceed AED 3 million.
Maintain records supporting the Corporate Tax position for at least seven years after the end of the relevant Tax Period.
Maintain company accounting records for at least the period required by company law and any longer applicable rule.
Use an appropriately registered and licensed auditor where an audit is required.
Check any free-zone, sector regulator, lender, investor or contractual audit requirement in addition to federal tax rules.

Frequently Asked Questions

No. Under the UAE Commercial Companies Law, every limited liability company and joint-stock company must have one or more auditors to carry out an annual audit of its accounts. Other company forms may appoint an auditor under the law. Separate Corporate Tax rules also require audited financial statements for Taxable Persons deriving revenue exceeding AED 50 million during the relevant Tax Period and for Qualifying Free Zone Persons.

A Taxable Person deriving revenue exceeding AED 50 million during the relevant Tax Period is required to prepare and maintain audited financial statements for Corporate Tax purposes. This is a Corporate Tax rule and should not be treated as the universal audit threshold for every UAE legal entity because LLCs and joint-stock companies are separately subject to annual audit requirements under the Commercial Companies Law.

For UAE Corporate Tax purposes, Taxable Persons generally prepare financial statements using IFRS. A Taxable Person whose revenue does not exceed AED 50 million may instead apply IFRS for SMEs in accordance with the applicable Ministerial Decision. This Corporate Tax accounting rule should be distinguished from accounting practices used for other reporting purposes.

For Corporate Tax purposes, Taxable Persons must maintain relevant records and documents for seven years following the end of the Tax Period to which they relate. Under the Commercial Companies Law, companies must keep accounting records for at least five years after the end of the fiscal year. The longer tax-retention requirement can therefore be the relevant minimum for records supporting a Corporate Tax position.

Yes. A Qualifying Free Zone Person is one of the categories expressly required to prepare and maintain audited financial statements under the Corporate Tax framework. This requirement is separate from the AED 50 million revenue threshold and should not be described as beginning only after the QFZP reaches AED 50 million of revenue.

For audits governed by the federal framework, the audit should be performed in accordance with the applicable UAE auditing-profession legislation by an appropriately registered and licensed auditor or audit firm. The Ministry of Economy and Tourism maintains current auditor-registration and professional- licensing services. Certain regulated sectors or entities can also have additional approval requirements from the relevant regulator.
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Official primary sources

Federal Tax Authority — Corporate Tax legislationFTA — Determination of Taxable Income guideFTA — Accounting Standards GuideFTA — Ministerial Decision No. 82 of 2023 on audited financial statementsUAE Legislation — Federal Decree-Law No. 32 of 2021 on Commercial CompaniesUAE Legislation — Federal Decree-Law No. 41 of 2023 on the Regulation of the Auditing and Accounting ProfessionsMinistry of Economy and Tourism — Auditing Accounts ServicesFTA — Record retention reminder for Corporate Tax taxpayers
2026 verification noteOfficial sources should control final compliance decisions

This guide distinguishes Corporate Tax accounting rules, Corporate Tax audit requirements and company-law audit obligations because they are not interchangeable. Free-zone, regulated-sector, licensing, lender and contractual requirements can impose additional obligations.