Ministerial Decision 82 of 2023 refers to a key regulation in the UAE that outlines the requirements for businesses with revenues greater than AED 50 million during a relevant tax period. This decision is particularly important for businesses operating under the framework of the UAE’s tax laws, especially in relation to the submission of audited financial statement.
Key Points of Ministerial Decision 82 of 2023:
1. Applicable Businesses with the revenue above AED 50 million:
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- Mandates that businesses generating revenue greater than AED 50 million during the relevant tax period must submit audit financial statements.
2. Requirements for Audited Financial Statements
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- The Financial statements must be audited by the auditor.
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- The auditor’s report must be submitted to the Federal Tax Authority ( FTA) along with the tax returns for the relevant period.
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- The Financial statements must be audited by the auditor.
3. Purpose of Decision:
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- This regulation aims to enhance transparency and ensure that businesses are accurately reporting their revenues and expenses. It also supports the UAE Yax system by ensuring that large entities undergo an independent review of their financial reporting.
4. Timeline for Submission:
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- The audited financial statements should be submitted within a specific timeline, usually along with annual tax returns. Businesses should ensure that they comply with the deadlines set by the FTA to avoid penalties.
5. Penalties for non-Compliance:
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- Failure to comply with this regulation could result in penalties, which can include fines or other sanctions as determined by the UAE’s tax authority.
Importance for Businesses:
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- This decision is part of the UAE’s broader efforts to strengthen its tax compliance framework, particularly as it aligns with international best practices and the requirements for the country’s economic diversification.
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- Businesses exceeding the revenue threshold should ensure they engage with a qualified auditor to meet these regulatory requirements and avoid any legal or financial consequences.
