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May 15, 2026

This decision specifies the accounting standards for UAE Corporate Tax. It mandates that Taxable Persons apply International Financial Reporting Standards (IFRS). However, businesses with revenue not exceeding AED 50 million may opt to use IFRS for Small and Medium-sized Entities (SMEs). It also details conditions for using the Cash Basis of Accounting, permitting it for persons with revenue up to AED 3 million or in exceptional circumstances upon Authority approval. The decision defines "consolidated Financial Statements" for a Tax Group as the aggregation of standalone statements with intra-group transactions eliminated, per Articles 20 and 42.

This is not an Official Translation:

Accounting Standards and Methods for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses

Ministerial Decision No. 114 of 2023

Issued 9 May 2023 – (Effective the day after publishing in the Official Gazette)

[GTL Notes]

The Minister of State for Financial Affairs has decided:

Having reviewed the Constitution,
Federal Law No. 1 of 1972 on the Competencies of Ministries and Powers of the Ministers, and its amendments,
Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority, and its amendments,
Federal Decree-Law No. 28 of 2022 on Tax Procedures,
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses,

Article 1 - Definitions

Words and expressions in this Decision shall have the same meanings specified in the Federal Decree-Law No. 47 of 2022 referred to above ('Corporate Tax Law'), and the following words and expressions shall have the meanings assigned against each, unless the context otherwise requires:

Financial Statements	:	A complete set of statements as specified under the Accounting Standards applied by the Taxable Person, which includes, but is not limited to, statement of income, statement of other comprehensive income, balance sheet, statement of changes in equity and cash flow statement.
Cash Basis of Accounting	:	An accounting method under which the Taxable Person recognises income and expenditure when cash payments are received and paid.

Article 2 - Preparing Financial Statements Using the Cash Basis of Accounting

For the purposes of paragraph (a) of Clause 5 of Article 20 of the Corporate Tax Law, a Person may prepare Financial Statements using the Cash Basis of Accounting, in any of the following instances:

Where the Person derives Revenue that does not exceed AED 3,000,000 (three million United Arab Emirates dirhams).
In exceptional circumstances and pursuant to an application submitted by the Person to the Authority.

The Minister of State for Financial Affairs has decided:

Article 1 - Definitions

Article 2 - Preparing Financial Statements Using the Cash Basis of Accounting

Article 3 - Financial Statements